U.S. stocks opened sharply lower on Monday in the first day of trade following Friday’s disappointing jobs report.
“We’re really trying to recalibrate what we’re thinking about the economy,” said Art Hogan, chief market strategist at Wunderlich Securities. “You’ve got weaker economic data and lackluster earnings (expectations).”
Alcoa reports quarterly results this Wednesday in the unofficial start to the earnings season.
Futures plunged on Friday after the monthly employment report showed the addition of 126,000 jobs, far below the estimated 245,000 from a Reuters poll.
“Maybe this will kick off a correction, which I think will be healthy,” said Maris Ogg, president of Tower Bridge Advisors, noting that the “is very fairly valued” and earnings expectations are low to negative.
U.S. markets were closed for Good Friday and European markets were closed for both Good Friday and Easter Monday. Asian stocks outside Japan gained on hopes the weak jobs report would push out a rate hike by the Federal Reserve.
U.S. stock futures continued to indicate a lower open following remarks by New York Federal Reserve President William Dudley that the central bank will watch subsequent data to see if March’s report was an aberration or an indicator of greater economic weakness. Weekly jobless claims have held to lower levels and had suggested a stronger read on monthly nonfarm payrolls.
Read More Fed in focus after bad jobs report spooks markets
Dudley was the first Fed official to speak publicly since the March labor report.
The U.S. dollar turned negative following the report, trading slightly lower while the euro crept above $1.10.
“The dollar has come a very long way in a very short period of time. The recent economic data lowers the possibility they’re going to tighten soon and that gives the dollar some air,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
