New York – Stocks moved lower in morning trading Friday, a day after one of the most turbulent days in the market’s history.
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A strong report on jobs reassured investors that the economy is recovering, however.
The Labor Department reported that employers added 290,000 jobs last month, far more than expected and the biggest jump in four years. However the jobless rate rose to 9.9 percent from 9.7 percent as more people looked for work.
The return of relative order to trading was a welcome relief after the market swung wildly the previous day. A computerized sell-off, which might have been triggered by a simple typographical error, sent the Dow Jones industrial average down by a record of nearly 1,000 points in about 30 minutes Thursday afternoon. The market started to steady itself and regained two-thirds of that loss before the end of trading.
Europe’s debt crisis and fears that it would spread has been hanging over the market this week, sending stocks sharply lower. The Dow’s drop of 631 points Tuesday through Thursday was its worst three-day point decline since November 2008.
The big improvement in the jobs report brought some clarity to the biggest question remaining for the U.S. economy: When employers would start hiring again. Despite positive signs in manufacturing and housing, job creation has been lagging far behind other sectors of the economy, a worrisome point for economists. Friday’s report may help change that perception.
“It’s a good-size number and it had a lot of breadth,” said John Silvia, chief economist at Wells Fargo. “There isn’t a double-dip out there. The employment situation suggests that we have a sustained economic recovery in the U.S. Companies are hiring people.”
In Europe, there was more progress toward freeing up a package of bailout loans for Greece. Germany’s parliament approved Berlin’s share of the rescue package after a boisterous debate. Germany is the largest contributor to the aid package and had been hesitant to sign off on the deal until Athens agreed to deeper cuts in spending.
In late morning trading the Dow Jones industrial average was off more then 200 points.
Falling stocks outpaced gaining ones by about three to two on the New York Stock Exchange, where volume was 300 million shares.