The Markets Now: Stocks Remain Lower After Employment Report

By Christopher Witrak  APR 05, 2013 12:50 PM

Plus, JC Penney's stock is one of the few major gainers of the day.

 


Stocks have stayed down after the Bureau of Labor Statistics released employment figures that missed estimates by a wide margin. The Dow (INDEXDJX:.DJI) decreased 0.76% to 14,494.85. The S&P 500 (INDEXSP:.INX) dropped 0.92% to 1,545.683, and the Nasdaq (INDEXNASDAQ:.IXIC) fell 1.09% to 3,189.75.

The Bureau of Labor Statistics reported in its Employment Situation Summary today that total nonfarm payroll employment increased by 88,000 month-over-month in March compared to the upwardly revised 268,000 jobs increase reported in February. The median forecast of economists surveyed by Bloomberg predicted a gain of 190,000 jobs. The unemployment rate lowered from 7.7% to 7.6% today. The Household Survey showed a reading of 11.7 million unemployed. Labor participation declined by 0.2% to 63.3%, and the civilian labor force declined by 496,000 individuals. 

The US Census Bureau and the US Bureau of Economic Analysis reported today that the trade deficit narrowed from 44.4 billion in January to $43 billion in February. Exports rose 0.8%, totaling $186 billion while imports remained flat at $228.9 billion. Read the full report here.

The Federal Reserve Board of Governors will release their report on consumer credit at 3:00 p.m. EDT. Consumer credit outstanding increased by $16.2 billion in January.

JC Penney (NYSE:JCP) increased 4.58% to $15.77. The retailer has gained for a second day after rising 4.5% yesterday.

Google (NASDAQ:GOOG) fell 1.90% to $780. Facebook (NASDAQ:FB) announced yesterday that it will launch its Facebook Home apps on Android, diverting users away from Google’s services to its own services and ads.

Cisco (NASDAQ:CISCO) dropped 1.88% to $20.65. F5 Networks (NASDAQ:FFIV), a competitor to Cisco, dragged down network companies after lowering its second-quarter revenue forecast. It projects it will report earnings excluding one-time items of $1.06 to $1.07 per share on $350.2 million in revenue versus earlier estimates of earnings of between $1.21 and $1.24 on revenue of between $370 and $380 million.

American Express Company (NYSE:AXP) decreased 2.52% to $65.05.

Philip Morris International (NYSE:PM) jumped dipped 2.13% to 2.13%.  

Twitter: @ChrisWitrak
The author has a position in Cisco.