Market Recap: Nasdaq Composite Plunges to 6-Year Low on Weak Jobs Data

              

You know the market's expectations are low when a monthly job loss of 651,000 sends futures higher. Yes, stocks actually rallied this morning following the latest in a string of dismal nonfarm payroll reports from the Labor Department. February's decline fell roughly in line with consensus expectations, as did the unemployment rate's jump to 8.1%. Although the results weren't as dire as some analysts feared, investors slowly realized that the day's data wasn't exactly rally-worthy. Following their initial pop higher, the major market indices sank into the red by midday. As panic and uncertainty continued to dominate, the Nasdaq Composite was finally pressured beneath its November 2008 lows. Meanwhile, the Dow Jones Industrial Average tumbled south of 6,500 for the first time since April 1997, and the S&P 500 Index fell to a fresh annual low of its own.

Despite the gloom and doom that dominated most of the session, the Dow Jones Industrial Average (DJIA – 6,626.94) rebounded at the eleventh hour, boosted by news that the U.K. government and Lloyds Banking Group agreed on a 250-billion pound asset protection plan. After sinking to an intraday nadir of 6,469.95, the Dow finished with a modest gain of 32.5 points, or 0.5%. Half of the 30 blue chips closed higher, led by General Electric (GE), while General Motors (GM) paced the 15 declining equities. For the week, the Dow dropped 6.2%.

The S&P 500 Index (SPX – 683.38) also clawed its way to a positive finish, though the broad-market barometer closed just fractionally higher. Earlier, the SPX fell to 666.79 -- its lowest price since September 1996. For the week, the index gave up 7.0%. Finally, the Nasdaq Composite (COMP – 1,293.80) was unable to eke out a gain, settling on a loss of 5.7 points, or 0.4%. The COMP slipped earlier to 1,268.50, revisiting territory last explored in March 2003. On a weekly basis, the COMP shed 6.1%.

Turning to equities in focus, Wells Fargo & Co. (WFC) defied widespread selling pressure after slashing its quarterly dividend ... Despite an upgrade to "outperform," Lowe's Companies (LOW) fell to a new 52-week nadir ... PNC Financial Services (PNC) was the target of a potential put-selling strategy ... Traders gravitated toward call options on Staples (SPLS) ahead of earnings ... Harmony Gold Mining (HMY) shrugged off a downgrade, thanks to a positive day for gold futures ... and today's Quote of the Day comes from Senate Majority Leader Harry Reid, who was one of many U.S. leaders to meet with Brad Pitt on Thursday regarding the actor's "Make It Right" campaign. After posing for a picture with Pitt, Reid reportedly cracked:

"How will people tell us apart?"

But these weren't the only headlines hitting the Street today. Click on the links below for our Daily Market Blog coverage of:

• Gold Fields Limited (GFI)
• Duke Energy (DUK)
• Sunoco (SUN)
• and Emergent BioSolutions (EBS)

And, in case you missed it, Jocelynn Drake turned her Options Spotlight on the shares of Novellus Systems (NVLS). Click here to watch the video.

For today's activity in crude oil, gold futures, options, and more, turn to page 2.

Unlike the equities market, oil futures shrugged off economic concerns and blazed a path higher. Black gold was buoyed today by weakness in the U.S. dollar, with the greenback slipping against its key foreign rivals in the wake of February's downbeat jobs data. Investors also eyed the prospect of potential production cuts by the Organization of Petroleum Exporting Countries (OPEC). Venezuelan oil minister Rafael Ramirez told reporters he wouldn't hesitate to propose another output reduction, and added that the cartel should target an oil price of $70 per barrel.

Elsewhere, OPEC Secretary Abdalla el-Badri warned of "a supply crunch by 2013 and beyond" if oil investments remain depressed. "Oil prices need to be at levels to help sustain economic growth, by supporting longer-term energy industry investments across the board," el-Badri asserted. Against this backdrop, crude oil for April delivery surged $1.91, or 4.4%, to close at $45.52 per barrel. For the week, the contract added 1.7%.

Gold futures also trekked higher, as the malleable metal caught a lift from today's downbeat payrolls report. With unemployment spiking to its highest level since 1983, investors stashed their cash in the popular safe-haven investment. By the close, gold for April delivery rose $14.90, or 1.6%, to end the session at $942.70 per ounce. On a weekly basis, the front-month contract added just 20 cents.

Levels to Watch in Trading:

Dow Jones Industrial Average (DJIA – 6,626.94) - support at 6,500; resistance at 8,000

S&P 500 Index (SPX – 683.38) - support at 600; resistance at 900

Nasdaq Composite (COMP – 1,293.80) - support at 1,300; resistance at 1,750

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