Tech Stocks Lead U.S. Index Decline from Peaks

Nichole Harper
04 Apr, 2014
New York City

Market indexes eased from record level and the U.S. employers added 192,000 jobs in March. All the payrolls increase were driven by the gains in private sector and total employment in the sector reached to a new high above 116 million. GrubHub Inc IPO soared.

[R]1:40 PM New York – Market indexes eased from record level and the U.S. employers added 192,000 jobs in March. All the payrolls increase were driven by the gains in private sector and total employment in the sector reached to a new high above 116 million. GrubHub Inc IPO soared.[/R]

Stocks opened higher in New York but weakness in tech stocks overshadowed broader market and investors took the latest jobs report as inadequate.

The national unemployment rate was unchanged at 6.7% in March with 10.5 million searching for jobs, according to the latest employment situation report.

The labor participation rate increased o.2 percentage point to 63.2% but stayed well below pre-recession high 66% in December 2007.

S&P 500 index declined 0.9% or 16.71 to 1,872.94 and the Nasdaq Composite Index dropped 2.4% or 101.86.

Jobless Rates Holds, Payrolls Rises 192,000 in March

The March month jobs data suggested a rebound in employment from the depths of the winter months, but the increase fell short of estimates. Almost all the gains in employment was driven by private payrolls.

Total nonfarm payrolls in March increased 192,000 and the unemployment rate was unchanged at 6.7%, the U.S. Bureau of Labor Statistics reported today.

Over the year, the number of unemployed persons declined by 1.2 million and the jobless rate fell 0.8 percentage point.

The increase in January data was revised higher to 144,000 from 129,000 and February payrolls were increased to 197,000 from 175,000. With the revisions, the gains in two months were 37,000 higher than previously estimated.

In March, employment grew in professional services, in healthcare, and in mining and logging.

Construction industry added 19,000 jobs in the month, professional and business services increased 57,000 jobs and healthcare expanded 19,000 jobs. Employment in food services and drinking places continued to trend up by 30,000.

Employment in government was unchanged and the decline of 9,000 in federal jobs was offset by 8,000 jobs increase in state and local government excluding education.

The average workweek for all employees on private non-farm payrolls increase by 0.2 hour to 34.5 hours and average hourly earnings decreased 1% to $24.30.

The employment in private payrolls surpassed pre-recession high 115.98 million in January 2008 to 116.09 million and the unemployment rate has declined to 6.7% form 8.2% in March 2012.

U.S. civilian labor force increased to 156.22 million with the participation rate of 63.2% and nearly 40 million are now employed by governments at all levels.

European Markets

In London trading, FTSE 100 index jumped 0.7% or 45.91 to 6,695.05 and in Frankfurt the DAX index increased 0.5% or 49.58 to 9,678.40.

In Paris, CAC 40 index climbed 0.7% or 32.05 to 4,481.38.

U.S. Stocks in Review

CarMax, Inc ((KMX)) dropped 2.7% or $1.31 to $46.25 after the used car dealer reported net sales in the fourth-quarter ending in February jumped 9% to $3.08 billion.

Net earnings in the quarter declined 7% to $99.2 million or 44 cents a diluted share compared to $107.2 million or 46 cents. Analysts were looking for 52 cents a share earnings.

The auto finance unit reported income increased 6.3% to $80.8 million and said sub-prime loan origination was $9.1 million.

The car dealer boosted its stock purchase program by $1 billion after completing the repurchase of $306 million in the fiscal year to the quarter.

Micron Technology, Inc ((MU)) increased 1.5% or 36 cents to $23.65 after the semiconductor device maker reported revenue in the second-quarter ending on February 27 rose 2% to $4.11 billion.

Net in the quarter swung to a profit $731 million or 61 cents a diluted share compared to a loss of $286 million or 28 cents.