Jobs Report Sends Stocks Plummeting

By on June 1, 2012

A weak Labor Department jobs report sent U. S. stocks below their long-term moving averages this morning. The report showed 69,000 jobs created in May, well below consensus expectations of 150,000 jobs being added. The unemployment rate crept up from 8.1 to 8.2 percent. The job numbers reported in the two previous months were revised downwards.

The report indicates a slowing economy according to economists Mark Zandi and Austan Goolsbee (CNBC video below).

The yield on the 10-year Treasury dropped below 1.5% indicating the fear investors are feeling regarding the prospect of a possible economic recession and deflation.

The DJIA is now flat for the year while the S&P 500 is sitting on its 200-day moving average.

S&P 500 - 200 Day Moving Average

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