Stocks closed sharply lower, following a disappointing jobs report last week. The U.S. economy added 120,000 jobs in March, following three straight monthly gains of 200,000 jobs or more, a trend economists expected would continue. Also, the Chinese government reported Monday that inflation rose at an annual rate of 3.6% in March, higher than expected. AT&T eased after the co. said Sunday that it had yet to reach a deal with its union on a new contract after the old one expired, but that workers would stay on the job while negotiations continue. Tech stocks also closed in the red, while AOL surged 43% after the co. said it agreed to sell more than 800 patents to Microsoft for about $1 billion in cash. Separately, Facebook agreed to buy photo network Instagram for $1 billion in cash and stock. Implied volatility surged to the 18 level on moderate trading volumes.
Tuesday, April 10, 2012
Closed sharply lower
Stocks closed sharply lower, following a disappointing jobs report last week. The U.S. economy added 120,000 jobs in March, following three straight monthly gains of 200,000 jobs or more, a trend economists expected would continue. Also, the Chinese government reported Monday that inflation rose at an annual rate of 3.6% in March, higher than expected. AT&T eased after the co. said Sunday that it had yet to reach a deal with its union on a new contract after the old one expired, but that workers would stay on the job while negotiations continue. Tech stocks also closed in the red, while AOL surged 43% after the co. said it agreed to sell more than 800 patents to Microsoft for about $1 billion in cash. Separately, Facebook agreed to buy photo network Instagram for $1 billion in cash and stock. Implied volatility surged to the 18 level on moderate trading volumes.
