By Kristina Peterson
U.S. stocks dropped Friday as the dollar soared and murky jobs
data mingled with investors' concerns over sovereign debt in
Europe.
Paring some of its earlier losses, the Dow Jones Industrial
Average (DJI) was recently down 38 points, or 0.4%, at 9,965.
General Electric (GE) was the worst performer among the blue
chips, down 2.8%. Chevron (CVX) was down 1.1%, amid a broader slide
in energy stocks as crude-oil futures skidded nearer to $70 a
barrel.
The 30-stock blue-chip measure traded below 10,000 all morning
after falling beneath that level for the first time since November
just before Thursday's close. The 10,000 level has proven to be one
of the most difficult round-number levels for the Dow to maintain
in its long history.
The Dow first pierced 10,000 in 1999 and has run to records
significantly above it several times. But investors said the
measure could be poised to tick up later in the day.
"The market looks like it's trying to bottom here," said Hank
Camp, president of trading firm H.L. Camp & Co. "If we stay
slow in the afternoon, you could get a march higher," as traders
unwind bearish short sales rather than risk holding them over the
weekend.
Meanwhile, the dollar strengthened against the euro -- the
single currency was recently trading near $1.36 -- and the yen.
The dollar index (DXY), which tracks the performance of the
greenback against a basket of six other currencies, jumped 0.7%.
The dollar has soared as concerns mounted over fiscal instability
in Greece, Portugal and Spain.
Helping sentiment, a much-anticipated employment report was
better than some investors had feared.
The U.S. jobless rate unexpectedly fell to 9.7% last month from
an unrevised 10% in December, the Labor Department said. Economists
expected the jobless rate to edge higher, to 10.1%.
"It's provided some relief," said Kenneth Polcari, managing
director of ICAP Equities. "I think people were a little bit
nervous in front of what they thought that number would be."
Still, the jobs data didn't point unequivocally to a
strengthening labor market. Nonfarm payrolls fell by 20,000,
compared with a revised 150,000 drop decline in December -- a
figure revised sharply downwards from an originally reported 85,000
drop. The Labor Department's annual benchmark revision to the
survey showed that last year's job losses were nearly 600,000 more
than previously reported.
The unemployment rate may have improved because more people gave
up their job searches, said Phil Orlando, chief equity market
strategist at Federated Investors.
The number of discouraged workers grew to 1.1 million in
January, up from 929,000 in December, according to the Labor
Department. That makes the unemployment rate likely to rise again
later in the year, Orlando said.
Technology stocks fared better than the broader market. The
Dow's tech components were mostly stronger, with Intel (INTC) up
1.5%, and Cisco Systems (CSCO) up 1.9%, the latter extending its
gains after posting strong earnings earlier this week.
The Nasdaq Composite Index (RIXF) was up less than one point.
The Standard & Poor's 500 index (SPX) was down 0.4%, with
industrials and energy among the sectors faring worst. The
measure's tech sector was up 0.5%.
Among other gainers, shares of health provider Aetna (AET)
traded 1.9% higher, after fourth-quarter earnings fell 15% but
analysts said the company's reserves and balance sheet bode well
for its stock.
And Airgas soared 39%, rallying as rival Air Products &
Chemicals (APD) offered $5.1 billion, or $60 a share, for the
industrial-gas company.
In other markets, Treasurys rose, with the 10-year note (UST10Y)
up 1/4 to yield 3.579%. Gold futures slipped in metals trading.