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Stocks plunge after jobs data

Friday, March 06, 2015 - 01:37

Wall Street did not like the better-than-expected jobs report fearing it could bring rate hikes sooner rather than later. Bobbi Rebell reports.

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The U.S. pumped out many more jobs than expected in February, and the unemployment rate dropped to 5.5 percent. But that good news on the economy raised expectations that the Federal Reserve could hike interest rates as early as June, and that sent stocks south. For the week, the major indexes all lost ground PNC Financial Services Gus Faucher. SOUNDBITE: GUS FAUCHER, SENIOR MACROECONOMIST, PNC FINANCIAL SERVICES GROUP (ENGLISH) SAYING: "It's a very good jobs report. We saw almost 300,000 jobs added in February. We were expecting about 235,000, so it beat expectations. Quite good. We should see continued job gains of close to 250,000 a month through the rest of this year." A blue chip switch: Apple will replace AT&T on the Dow Jones Industrial index later this month. AT&T was the most actively traded Dow stock. More foot traffic during the holidays helped Foot Locker's profit and sales beat expectations. Deutsche Bank raised its price target on the athletic shoe retailer. That's not all. Deutsche Bank also raised the price targets of several online brokers. It said Charles Schwab was its top pick in a rising rate environment, and it noted E*Trade Financial's earnings power was less dependent on rates. They were the biggest gainers on the S&P 500. Yoga pant maker Lululemon shares fell on a downgrade by Goldman Sachs to sell from neutral. Gold stocks like Barrick Gold and Goldcorp slid as gold prices fell to a two month low. In Europe, stocks ended mostly higher, with just the FTSE taking a step back.

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Stocks plunge after jobs data

Friday, March 06, 2015 - 01:37