Some strategists even said the weak jobs report could renew hopes for more stimulus from the Federal Reserve.
"Considering 70 percent of all jobs created over the past six months are of the low-income variety, seeing this disappointing print doesn't bode well for the health of the U.S. economy," said Todd Schoenberger, managing principal of The BlackBay Group. "Question marks about earnings growth for companies and further acceleration in GDP remain unanswered with [the jobs] data."
Apple reversed their early losses even after BTIG downgraded the tech giant to "neutral" from "buy,"citing possible pricing pressures that may force the company to cut prices on its iPhone and following a sharp runup in the stock this year.
Also among techs, AOL surged after the Internet services company agreed to sell 800 of its patentsand related applications to Microsoft , in a deal valued at about $1.06 billion in cash. At least two brokerages raised their price target on AOL.
Major media companies declined after Citigroup slashed its ratings on CBS , Discovery , Disney and News Corp to "neutral" from "buy." Time Warner also slipped even after Citigroup boosted its price target on the company to $45 from $40.
Earnings season kicks off this week, with Dow component Alcoa slated to post after-the-bell on Tuesday. Google and JPMorgan are also scheduled to report thorughout the week.
“Earnings expectations have been going down, so it’s easier to meet lowered expectations,” noted Landesman. “On the other hand, when earnings aren’t growing quickly, people take down growth rates.”
Avon named Sherilyn McCoy as its new CEO. The cosmetic company's current CEO Andrea Jung will become executive chairman. Last week Avon received an unsolicited $10 billion takeover bidfrom privately-held fragrance company Coty.
Most European markets remained closed for the Easter holiday and are scheduled to reopen for trading Tuesday.
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Coming Up This Week:
TUESDAY: NFIB small biz optimism index, wholesale trade, Atlanta Fed pres speaks, 3-yr note auction, Minneapolis Fed pres speaks; Earnings from Alcoa and interim results from Chevron
WEDNESDAY: Weekly mortgage apps, import & export prices, Kansas City Fed pres speaks, oil inventories, Boston Fed pres speaks, 10-yr note auction, Fed's Beige Book, St. Louis Fed pres speaks, Carnival shareholders meeting; Earnings from Progressive
THURSDAY: International trade, jobless claims, PPI, Philadelphia Fed pres speaks, 30-yr bond auction, Minneapolis Fed pres speaks; Earnings from Rite Aid, Google
FRIDAY: CPI, consumer sentiment, Bernanke speaks; Earnings from JPMorgan, Wells Fargo
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