Dismal jobs report could drag down stocks

  @CNNMoneyInvest April 5, 2013: 8:42 AM ET
sp 500 futures 730

Click on chart to track markets


A rough Friday is in the cards for the stock market, which faces a sorely disappointing report on the jobs market .

U.S. stock futures were lower as investors reacted to dismal results on the most important employment report of the month.

The U.S. Labor Department released its monthly jobs report showing 88,000 jobs were created in March, dragging down the unemployment rate to 7.6%. That was far below expectations.

Economists surveyed by CNNMoney had expected the report to show that the economy added 190,000 jobs in March, with the unemployment rate holding steady at 7.7%.

The report follows a surprisingly negative weekly jobless claims report on Thursday.

The jobs number provides a depressing look at the strength of the recovery just days after San Francisco Federal Reserve Bank president John Williams said that if the economy improves, the central bank could start tapering its bond purchase program.

At 3 p.m. ET, the Federal Reserve will release data on consumer credit.

Fear & Greed Index: Neutral

U.S. stocks closed higher Thursday amid a mixed bag of news from central banks around the globe, including the Bank of Japan's plan to pump more money into the Japanese economy and European Central Bank's announcement that it would keep rates unchanged.

In company news, shares of F5 Networks (FFIV) plunged 17% in premarket trading Thursday after the technology company announced preliminary quarterly results that fell well short of expectations on sales and earnings. The announcement could impact other companies in the networking sector, such as Cisco Systems (CSCO, Fortune 500), which dropped more than 3% in premarket trading, and Juniper Networks (JNPR).

In South Korea, Samsung Electronics beat market expectations with strong guidance, fueled by the upcoming new model of its Galaxy smartphone, and ahead of its impending quarterly report. The new Samsung product could present more competition to iPhone maker Apple (AAPL, Fortune 500).

Related: Bitcoins are a bubble

Is Carnival's 'Triumph' cursed?

European markets fell in midday trading. The FTSE 100 in London, the DAX in Frankfurt and the CAC 40 in Paris dropped more than 1%.

Asian markets ended mixed. Japan's Nikkei added 1.6% as the BoJ-induced rally continued. The Nikkei reached its highest level in nearly five years on Friday, as the Bank of Japan took aggressive action to counter persistent deflation by pumping more money into the economy.

Hong Kong's Hang Seng tumbled 2.7%. Shanghai's market was closed for a holiday. To top of page

Join the Conversation
Sponsored by
Index Last Change % Change
Dow 16,408.54 -16.31 -0.10%
Nasdaq 4,095.52 9.29 0.23%
S&P 500 1,864.85 2.54 0.14%
Treasuries 2.72 0.08 3.19%
Data as of 6:56am ET
Company Price Change % Change
Bank of America Corp... 16.15 0.00 0.00%
Facebook Inc 58.94 0.00 0.00%
General Electric Co 26.56 0.00 0.00%
Cisco Systems Inc 23.21 0.00 0.00%
Micron Technology In... 23.91 0.00 0.00%
Data as of Apr 17
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.32%4.26%
15 yr fixed3.36%3.27%
5/1 ARM3.37%3.27%
30 yr refi4.31%4.24%
15 yr refi3.34%3.25%
View rates in your area
Find personalized rates:
Rate data provided
by Bankrate.com
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.