Wall Street has opened was lower after data showed the US economy added more jobs than expected in February, easing concerns about a recession and suggesting there was room for the Federal Reserve to gradually raise interest rates this year.
Nonfarm payrolls increased by 242,000 jobs last month, the Labor Department said on Friday. The unemployment rate held at an eight-year low of 4.9 per cent even as more people piled into the labour market.
“I guess the only blemish is that wages number, and I am looking for some sign there is something seasonal going on here, which could always be the case,” said Paul Christopher, head market strategist for Wells Fargo Investment Institute in St Louis.
In early trade the Dow Jones industrial average was down 24.52 points, or 0.14 per cent, at 16,919.38, the S&P 500 was down 3.62 points, or 0.18 per cent, at 1,989.78 and the Nasdaq Composite index was down 13.00 points, or 0.28 per cent, at 4,694.42.
Seven of the 10 S&P sectors were lower, led by a 0.49 per cent fall in the rate-sensitive utilities sector.
With corporate earnings winding down, investors will now focus on macro-economic data as they wait for the Fed’s next move. The central bank’s rate-setting committee is scheduled to meet on March 15-16.
Economists, however, believe the strong jobs market and improved growth outlook, together with signs that inflation is creeping up, could prompt the Fed to lift borrowing costs in June.
In a separate report, data showed trade deficit widened to $US45.7 billion ($A62.06 billion) in January, below the $US44 billion estimated, as a strong dollar and weak global demand helped push exports to a near six-year low.
Shares of Hewlett Packard Enterprise were up 13.2 per cent at $US15.40 after the company reported better-than-expected profit and revenue.
Carmike Cinemas was up 15.8 per cent at $US29.07 after AMC Entertainment said it would buy the theatre chain for $US1.1 billion, including debt. AMC was up 2.5 per cent at $US26.33.
Broadcom was up 4.4 per cent at $US143.31 after the chipmaker reported higher-than-expected quarterly profit.
Advancing issues outnumbered decliners on the NYSE by 1,334 to 1,279. On the Nasdaq, 1,171 issues fell and 1,096 advanced.
The S&P 500 index showed seven new 52-week highs and one new low, while the Nasdaq recorded 11 new highs and nine new lows.
