With traders reacting negatively to another disappointing jobs report, stocks have moved notably lower in early trading on Friday. The major averages have dropped firmly into negative territory, adding to the losses posted in the previous session.
Much of the early weakness on Wall Street stems from the release of a report from the Labor Department showing much weaker than expected job growth in the month of April.
The report has added to recent economic uncertainty, although selling pressure has been somewhat subdued amid optimism that the data could lead to further action from the Federal Reserve.
Oil service stocks are seeing substantial weakness in early trading, moving sharply lower along with the price of crude oil. With crude for June delivery falling $2.25 to $100.29 a barrel, the Philadelphia Oil Service Index is down by 2.3 percent.
Significant weakness has also emerged among steel stocks, which are under pressure amid concerns about the outlook for demand. Trucking, telecom, and railroad stocks are also posting notable losses.
Meanwhile, gold stocks are bucking the downtrend, benefiting from an increase by the price of the precious metal. The NYSE Arca Gold Bugs Index is up by 1.2 percent, bouncing off a two-year low.
The major averages have moved roughly sideways in recent trading, lingering near their lows for the young session. The Dow is down 89.08 points or 0.7 percent at 13,117.51, the Nasdaq is down 35.09 points or 1.2 percent at 2,989.21 and the S&P 500 is down 11.70 points or 0.8 percent at 1,379.87.
by RTT Staff Writer
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