Markets Falling After Jobs Report Comes in Below Estimates

The Labor Department today said that 192,000 new nonfarm jobs were added to U.S. payrolls in March, a moderate miss from economists' expectation of at least 200,000 jobs. Unemployment remained at 6.7% but that was likely due to the fact that the workforce increased by 500,000 people. The higher the workforce participation rate, the healthier the economy should be.

But despite the strong jobs report, the major U.S. indexes were all heading lower as of 1 p.m. EDT. The Dow Jones Industrial Average (DJINDICES: ^DJI  )  was down by 75 points, or 0.46%, the S&P 500 dropped by 0.85% and the Nasdaq hammered by a 2.5% fall.

 

Within the Dow, shares of Walt-Disney (NYSE: DIS  )  were down 0.9% even after Merrill Lynch increased its price target on the stock to $94. The price change resulted from Disney's success with the animated film Frozen. This past weekend the film became the top grossing animated movie ever, and it now sits in the No. 10 spot on the list of biggest blockbusters of all time. Furthermore, the movie is the best-performing Disney or Pixar animated film in 27 different countries, including large markets such as Brazil, Russia, and China. The film is clearly not only a blockbuster for Disney, but should help the company attract new customers to its theme parks and help boost merchandising sales. 

Another stock getting a nice review from an analyst is sandwich shop Potbelly (NASDAQ: PBPB  ) , which is up more than 5.3%. The move comes following a rough patch for the stock in which it has fallen from $33.90 per share down to yesterday's close of $17.12, as investors grow concerned about the future growth prospects of the company. However, an analyst from William Blair increased the stock's rating from market perform to outperform, saying that the recent decline in the share price and the reduced valuation leave limited downside risk in the stock. Furthermore, high interest from investors could send shares higher if same-store sales trends come in favorable. Neither reason given by the analyst is based in any hard data about the company. Investors may not want to jump on this bandwagon based solely on one analyst's opinion.  

On notable loser today is CarMax (NYSE: KMX  ) , as shares are off by 4% following the company's quarterly earnings release in which both revenue and earnings came in below analysts' estimates. Revenue was reported at $3.08 billion, while analysts had anticipated $3.18 billion. Earnings per share came in at $0.44, while Wall Street was looking for $0.53. The company saw a 12% increase in car sales, and financing income was up 6%, but increasing cancellation reserves cost cut into CarMax's earnings during the quarter. Today's move seems a little overblown considering that the earnings miss was not due to poor operations.  

3 stocks to own for the rest of your life
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 


 
 
 
 

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2903557, ~/Articles/ArticleHandler.aspx, 9/19/2014 2:07:00 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 17,291.18 25.19 0.15%
S&P 500 2,010.63 -0.73 -0.04%
NASD 4,575.29 -18.14 -0.39%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/19/2014 1:51 PM
^DJI $17291.60 Up +25.61 +0.15%
DOW JONES INDUSTRI… CAPS Rating: No stars
DIS $90.56 Up +0.22 +0.24%
Walt Disney CAPS Rating: *****
KMX $53.49 Down -0.03 -0.06%
CarMax CAPS Rating: *****
PBPB $12.37 Down -0.07 -0.56%
Potbelly Corporati… CAPS Rating: **

Advertisement