By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks reversed early post-jobs
report gains but indexes were still on track to record modest
weekly gains.
Investors looked past today's better-than-expected jobs data, as
much of today's number was already priced into the markets.
The S&P 500 index (SPX) dropped 4 points, or 0.2%, to
1,873.10, pulling away from the previous record close reached on
Thursday. Most sectors were trading lower, with only financials
holding onto gains.
The Dow Jones Industrial Average (DJI) fell 7 points to
16,414.91. Both the benchmark and blue-chip indexes were on track
for their second-straight week of gains.
The Nasdaq Composite (RIXF) performed worst of all, dropping 32
points, or 0.7%, to 4,320.15, but was on track to record a
fifth-straight weekly gain.
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"The headline number on the jobs report was good, though the
details were still mixed. More importantly, the underlying trend in
the labor market is fairly good -- not booming, but certainly not
falling off the table," said John Canally, investment strategist at
LPL Financial.
"The next hurdle for the markets will be the FOMC meeting and
Janet Yellen's press conference -- markets will be watching
carefully for any hints in changes of policy. Markets will also
focus on weekly jobless claims and JOLTS reports for more clues on
the health of the labor market. Specifically, how quickly the slack
in hiring is being picked up," he added.
The U.S. economy generated 175,000 jobs in February despite
harsh winter weather, but the unemployment rate ticked up for the
first time in 14 months, the government reported Friday.
The steady pace of hiring last month -- the biggest increase in
three months -- suggests the economy has not slowed as much as a
recent spate of indicators appear to indicate. The unemployment
rate, for example, edged up because more people entered the labor
force in search of jobs. That's usually a sign that workers think
more jobs are available.
Separately, the U.S. trade deficit rose slightly to $39.1
billion in January from a revised $39 billion in the prior month,
the Commerce Department said Friday. Economists surveyed by
MarketWatch had forecast a deficit of $39.7 billion.
Still to come is a consumer-credit report due to be released at
3 p.m. Eastern.
Among individual stocks, Skullcandy (SKUL) shares shot up 28%
after earnings released late Thursday topped expectations.
Another big gainer was Big Lots (BIG), which jumped 21% after
the company's top line beat Wall Street expectations.
And Foot Locker Inc. (FL) rose 7.5% after earnings results beat
estimates.
Shares in Prudential Financial Inc (PRU) rose 2% after analysts
at Bank of America Merrill Lynch raised the stock to buy from
neutral.
Shares of Safeway Inc. (SWY) fell 2.5% after details of a merger
with supermarket Albertsons -- owned by private-equity firm
Cerberus Capital Management -- emerged, disappointing some
investors.
In other markets, Asian stocks showed strength, with the Nikkei
225 index gaining 0.9%. But Hang Seng index closed lower.
European stocks closed lower. Oil prices extended gains, while
gold prices fell further.
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