Stocks once again gave up ground for the week, after a stronger-than-expected jobs report renewed concerns about a Fed rate hike coming in the fall. Bobbi Rebell reports.
Choppy trading on Friday ending in mixed results for the major U.S. indexes. But for the week, it was down arrows across the board. A better-than-expected jobs report, including a jump in wages, now has traders and some economists betting that the Fed could raise interest rates as soon as this fall. PNC Financial senior economist Gus Faucher agrees. (SOUNDBITE) GUS FAUCHER, SENIOR ECONOMIST, PNC FINANCIAL SERVICES GROUP (ENGLISH) SAYING: "I think, June is still too soon, given that slowing inflation, but, I think, by the time we get to September, we'll have another couple good months of job growth. We'll have a first read on second quarter GDP that will indicate the economy is expanding again. And we'll see inflation picking up. And that should be enough for the Fed to move ahead." The dollar extended gains against a basket of currencies after the jobs data, while yields on 10-year U.S. Treasuries surged to their highest since October, before retreating. Oil group OPEC agreed to stick by its policy of not limiting output for another six months. Oil prices having rebounded by more than a third after hitting a six-year low of $45 a barrel in January Shares of Dreamworks Animation shot up after Stifel upgraded them to "buy" from "hold." Stifel applauded the company's move to focus on films for younger audiences. Also up: Diamond Foods, one of the day's top performing small cap stocks. The packaged food company's quarterly profit crushed analysts estimates. Higher margins from nut sales beefed up income. In Europe, Greece's move to put off a debt payment sent European stocks south.