Weak BLS Jobs Report Hits Stocks

By on May 4, 2012

The Bureau of Labor Statistics (BLS) reported a weaker than expected jobs report this morning. An excerpt from the report:

Nonfarm payroll employment rose by 115,000 in April, and the unemployment rate was little changed at 8.1 percent, the U.S. Bureau of Labor Statistics reported today.

Expectations were for an increase of 165,000 new jobs.

Initially, the stock market took the news in stride with slight weakness. However, the selling accelerated as investors began digesting the news.

The report was just another piece of the mixed economic puzzle. The recovery remains fragile, but hopes remain for speculators that the Fed will come in with QE3 to inflate asset prices yet again.

The S&P 500 is trading below its 50-day moving average, but remains far above the 200-day moving average.

S&P 500 - Moving Averages

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