The Dow and S&P 500 closed down near one percent and energy stocks fell alongside another drop in crude oil prices. Leah Duncan reports.
A strong headline jobs number not enough to keep a rally in stocks going. The Dow and S&P 500 closed down near one percent and energy stocks fell alongside another drop in crude oil prices. For the week the Dow dropped 0.5 percent, the S&P declined 0.6 percent and the Nasdaq fell half of one percent. The economy added 252,000 jobs in December, topping estimates for 240,000. Meanwhile the unemployment rate dropped to postrecession lows at 5.6 percent, though the decline was partly due to workers leaving the workforce. But a drop in wages surprised investors expecting to see continued strength in average hourly earnings. Economists say that decline could mean the Fed might take a slow-go approach to raising rates. Eric Stein, Fixed Income Portfolio Manager, Eaton Vance SOUNDBTIE: ERIC STEIN, FIXED INCOME PORTFOLIO MANAGER, EATON VANCE (ENGLISH) SPEAKING: "I think, in some ways, its a very strange report because the headline payroll print above 250,000 very solid, the revisions to last month very strong, payroll print was even higher than last month, that was great. But what was really strange was on the wage front. Wages were actually down month over month, and that's got to be concerning to the Fed." Abbvie shares dropped three percent after health insurer Anthem said its partnering with Gilead Sciences, allowing its hepatitis C drug Harvoni to be the primary treatment for patients infected with the virus. Meanwhile Five Below sank 18 percent, that after the discount retailer forecast fourth-quarter sales and earnings below Wall Street estimates. And Bed, Bath & Beyond dropped 8 percent after it forecast fourth-quarter earnings at the low end of expectations. European shares posted a loss weighed down by a slide in banks.