Stocks drop early after mixed jobs report

By STEPHEN BERNARD, AP Business Writer Stephen Bernard, Ap Business Writer – 17 mins ago

Overseas markets were mixed after China said its inflation rate jumped 2.7 percent in February from 1.5 percent in January. Rapid inflation could force China to raise interest rates. That, in turn, could slow one of the world‘s fastest-growing economies and put a damper on a global recovery.

But the market was unimpressed by the report. While it showed some easing of the labor market, it didn‘t point to the increase in hiring that investors want to see. Stocks have traded in a narrow range since the Labor Department said on Friday that employers cut fewer jobs in February than analysts expected. The market is looking for more signs of progress.

In early morning trading, the Dow Jones industrial average fell 31.06, or 0.3 percent, to 10,536.27. The Standard & Poor‘s 500 index dropped 4.06, or 0.4 percent, to 1,141.55, while the Nasdaq composite index fell 9.81, or 0.4 percent, to 2,349.14.

Increased mergers and acquisitions in recent weeks has been a positive sign that companies believe the economy is getting stronger.

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