Stocks lower as Street digests jobs miss; Dow dips 100 points

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.

Over the weekend, Greece’s finance minister told reporters in Washington after a meeting with International Monetary Fund managing director Christine Lagarde that the country “intends to meet all obligations to all its creditors, ad infinitum.” Athens is due to pay the IMF 450 million euros ($494 million) Thursday.

Read More Greece needs deal by April 24: Varoufakis

Symbol
Name
Price
Change
%Change
DJIA Dow Jones Industrial Average 17690.92 -72.32 -0.41%
S&P 500 S&P 500 Index 2061.01 -5.95 -0.29%
NASDAQ Nasdaq Composite Index 4872.25 -14.69 -0.30%

The only data release due Monday is the ISM Services index, due at 10am Eastern time.

Tesla delivered 10,030 vehicles during the first quarter, its highest quarterly total ever and a 55 percent increase over the first quarter of 2014.

Lorillard and Reynolds American are on watch today, on a shift in sentiment about whether a proposed merger between the tobacco giants will be allowed to proceed. The stocks had fallen in recent weeks on sentiment that it would be rejected, but reports emerged late last week that the FTC was leaning towards a proposed compromise that would allow it to go through.

The Dow Jones Industrial Average opened down 113 points, or 0.63 percent, at 17,652, with Johnson and Johnson the greatest laggard and Exxon Mobil leading blue chip gainers.

The S&P 500 opened down 9.60 points, or 0.46 percent, at 2,057, with financials leading seven sectors lower and utilities the greatest advancer.

The Nasdaq opened down 32 points, or 0.67 percent, at 4,854.

CNBC’s Peter Schacknow contributed to this report.

On tap this week:

Monday

Earnings: A. Schulman

9:45 a.m.: Services PMI

10:00 a.m.: ISM nonmanufacturing

Tuesday

Earnings: International Speedway, Schnitzer Steel, Dave and Buster’s

8:50 a.m.: Minneapolis Fed President Narayana Kocherlakota

10:00 a.m.: JOLTs

1:00 p.m.: $24 billion 3-year note auction

3:00 p.m.: Consumer credit

Wednesday

Earnings: Alcoa, Family Dollar, Rite Aid, Bed Bath and Beyond, Pier 1 Imports, Global Payments, RPM International

8:00 a.m.: Fed Gov. Jerome Powell on challenges for monetary policy

10:00 a.m.: New York Fed’s Dudley on economy

1:00 p.m.: $21 billion 10-year note auction

2:00 p.m.: FOMC minutes

Thursday

Earnings: Walgreen Boots Alliance, Constellation Brands, Ruby Tuesday, PriceSmart

8:30 a.m.: Initial claims

10:00 a.m.: Wholesale trade

1:00 p.m.: $13 billion 30-year auction

Friday

8:30 a.m.: Import prices

8:45 a.m.: Richmond Fed President Jeffrey Lacker on economic outlook

12:20 p.m.: Minneapolis Fed’s Kocherlakota

2:00 p.m.: Federal budget