Still lower, digesting jobs data

Small-cap stocks remained lower into mid-session, pressured by worries over the economy following a dour report on the nation’s employment status. Energy shares and homebuilders were taking a hit today, which added to the bearish tilt. Still, the market bounced off the early lows as investors continue to bet that the worst of the recession news is already priced into the market. At 12:26 p.m. ET, the Russell 2000 (NYSE:IWM) was down 11.79, or 2.35% at 490.22.

Today’s monthly employment release from the Labor Department said that the unemployment rate climbed to 7.2%, the highest level since 1993. Although the jobless rate was above expectations, the 524,000 decline in non-farm payrolls met the consensus forecast and was better than the “whisper” numbers floating about ahead of this morning’s report. Treasury markets turned higher after the news, which suggests the economy fears are still very much in play.

Looking at sector activity so far today, technology stocks, energy firms, banking shares and homebuilders were pacing the declines. Retailers were also taking a hit, with apparel and accessory companies down hard again today. Losers were swamping ...

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