US open: Stocks slide after worse-than-expected non-farm payrolls

US stocks declined on Friday as the non-farm payrolls report revealed employers added less jobs than expected in January.

The Dow Jones Industrial Average dropped 0.09%, the Nasdaq fell 0.43% and the S&P 500 dipped 0.34% at 1432 GMT.

US employers added 151,000 jobs, compared with consensus expectations for a 190,000 gain and a downwardly-revised 262,000 the previous month, the Labor Department’s non-farm payrolls data showed.

The unemployment rate fell to 4.9% from 5% in December, nearing an eight-year low. Economists had expected the rate to remain unchanged at 5%. Average hourly earnings rose 2.5% year-on-year in January, beating forecasts for a 2.2% increase.

"However confident Janet Yellen and her Fed colleagues were when raising interest rates in December, the US data released in January must be giving them food for thought – and today’s poor non-farm payroll figures are no different," said Dennis de Jong, managing director at UFX.com.

"Adding less than 200 thousand jobs for the first time since October, coupled with lower than expected GDP and productivity figures, has taken some of the shine off of the previously buoyant US economy."

Meanwhile, the US trade deficit expanded in December to a seasonally adjusted $43.36bn from the previous month’s $42.23bn as exports fell 0.3% and imports increased 0.3%. Analysts had expected a deficit of $43.20bn.

In mainland China, the markets were relatively quiet as Chinese went from the trading floors to massive queues outside train stations for the week-long Lunar New Year holiday.

The week is the busiest for travel in the populous nation, as Chinese travel back to their home towns.

European stocks turned higher as investors shrugged off disappointing German factory orders data.

Oil prices reversed earlier gains, with West Texas Intermediate dropping 0.44% to $31.58 per barrel and Brent falling 0.46% to $34.30 per barrel at 1415 GMT.

The dollar was up 0.80% against the pound, up 0.68% against the euro and up 0.36% against the yen. Spot gold was down 0.83% to $1,146 per ounce.

In company news, shares in LinkedIn plunged after the social media company late on Thursday forecast slower growth for the year.

Symantec’s shares jumped after it revealed Silver Lake will be giving it a $500m cash injection.