Stocks sink after November jobs data came in hotter than expected

Yahoo Finance Live’s Brad Smith discusses how markets opened on Friday.

Video Transcript

[AUDIO LOGO]

[MUSIC PLAYING]

JULIE HYMAN: We are coming up on the opening bell here on this jobs Friday.

[WALL STREET BELL RINGING]

We have been seeing a lot of selling pressure going into the open because of the stronger-than-expected report, particularly for the wage growth that we saw. And so-- and the implications for the Federal Reserve perhaps having a higher terminal rate as a result. So that's why we're seeing this lower open as we see the opening bell here. CIBC Miracle Day and NBA star Charles Oakley ringing the-- that's the taller fellow than the rest who is ringing the opening bell here on this Friday morning.

So as we look at the-- at stocks now as they open up, we are seeing declines across the board for the major averages in the wake of that jobs report. It looks like-- is the NASDAQ open there? I'm guessing it hasn't opened quite yet and that's why we are still seeing green being reflected there because we are definitely going to see a red open for the NASDAQ.

BRAD SMITH: Indeed. Yeah, just calibrating a bit here as we get through that opening cross. And yeah, we saw the Oak man there up on the podium at the NYSE. I'm sure a lot of the traders down there on the floor of the exchange recognize exactly who he is from his days with the Knicks and, of course, several seasons in the NBA.

But taking a look at these declines. Yo, they're gonna recognize that type of reaction, too, when on good news is bad news type of environment that we're seeing here. On the economic data front, we saw some of the better jobs reports-- or at least that 260,000-plus jobs that came out above expectations. That immediately reacted-- or saw the major averages react. We're right now down by about 9/10 of a percent. 300 points for the Dow Jones Industrial Average.

Let's see if the NASDAQ Composite is calibrated here. We're gonna continue to keep a close eye on that as well. The S&P 500, you're seeing that down by about 1% here out of the gate, though.

But then additionally, let's take a look at some of the sector activity that we're tracking right now this morning. As we're taking a look at the 11 S&P 500 sectors, not one green spot to be found, as we had seen that broader dip really kind of permeate across sectors here. You're seeing the biggest laggard, though, right now, real estate. That's down by about 1 and 1/2% out of the gate this morning.

Energy, that's even joining the negative gains party here. That's seeing some ketchup on its shirt by about 3/10 of percent. And so we'll continue to watch all of this. But again, the S&P 500, more broadly, down by a little more than 1% out of the gate. A little ketchup.

JULIE HYMAN: A little ketchup on the shirt, I guess.

BRAD SMITH: That's right.

JULIE HYMAN: [LAUGHS]