U.S. stocks open sharply lower after jobs data; Dow Jones tumbles 1.02%

Investing.com - U.S. stocks opened sharply lower on Friday, after the release of U.S. data painted a mixed picture of the strength of the country's economic recovery, while euro zone financial concerns continued to weigh.

During early U.S. trade, the Dow Jones Industrial Average tumbled 1.02%, the S&P 500 index retreated 1.20%, while the Nasdaq Composite index plummeted 1.60%.

In a report, the U.S. Bureau of Labor Statistics said the economy added 88,000 jobs in March, far less than the expected 200,000 increase, after 268,000 jobs were created the previous month.

The private sector added 95,000 jobs last month, after an increase of 254,000 in February, compared to expectations for a 209,000 rise.

The report also showed that the U.S. unemployment rate ticked down to 7.6% in March, from 7.7% the previous month. Analysts had expected the unemployment rate to remain unchanged last month.

Separately, official data showed that the U.S. trade deficit narrowed unexpectedly in February, improving to USD43 billion from a deficit of USD44.5 billion the previous month. Analysts had expected the trade deficit to widen to USD44.6 billion in February.

Tech company F5 Networks dove 20.02% after it lowered its forecast for second-quarter revenue. Following the news, Cisco, the world’s largest maker of networking equipment, plummeted 4.21%, while Juniper Networks sank 7.12%.

Airline companies were also in focus, amid concerns an outbreak of bird flu in China will hurt airline traffic. As of Friday morning, the death toll from the disease climbed to six in China.

United Airlines plunged 4.44% at the open of the U.S. trading session. The U.S. Centers for Disease Control and Prevention said on Thursday it was monitoring the new bird flu strain and has started work on a vaccine just in case it is needed.

Elsewhere, Walt Disney tumbled 1.61%, following reports it expects to begin layoffs at its studio and consumer product divisions within the next two weeks, in the latest cost-reduction step to emerge from a company-wide review.

Financial stocks added to losses, as shares in JP Morgan retreated 0.69% and Goldman Sachs plummeted 1.21%, while Bank of America and Citigroup lost 1.84% and 1.92% respectively.

On the upside, Hanesbrands surged 259% after the apparel maker said late Thursday it will pay a quarterly dividend of 20 cents a share in June, marking the first time it has made a payout to shareholders.

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.79%, France’s CAC 40 plunged 2.12%, Germany's DAX retreated 2.07%, while Britain's FTSE 100 plummeted 1.92%.

During the Asian trading session, Japan’s Nikkei 225 Index rallied 1.58%, while markets in Hong Kong and mainland China remained closed for a public holiday.