U.S. stocks dropped on Friday on surging oil prices, despite a solid report of unemployment rate.
The Labor Department said on Friday that nonfarm payrolls increased 192,000 in line with expectations. Data for December and January was revised to show 58,000 more jobs created than previously estimated.
The government posted Thursday that the number of people applying for initial unemployment benefits fell to 368,000. The reading was the lowest level since May 2008. The previous day, payroll processor Automatic Data Processing Inc. (ADP) said companies hired 217,000 people last month, 20 percent more than analysts had expected.
Meanwhile, the Commerce Department reported Friday that businesses ordered more manufactured goods from U.S. factories in January. According to the report, total business orders jumped 3. 1 percent in January, the biggest growth in over four years, thanks to the growing demand for commercial aircraft.
Manufacturing has been considered as one of the crucial performers during the course of U.S. economic recovery. Earlier this week, the Institute for Supply Management posted that U.S. manufacturing activity increased in February at the fastest pace in about seven years.
But the solid report from job market and manufacturing industry did not overshadow the concerns over surging oil prices. As oil becoming more and more expensive, investors worried that it will hurt the U.S. economy recovery.
Economists believed that if oil rises to 150 dollars or more per barrel, and remain at that level for several months, it may trigger another round of recession.
Those concerns have been heightened by recent surging prices of oil. Oil prices rose past 104 dollars a barrel on Friday at a 29- month high, as unease in Middle East intensified.
The Dow Jones industrial average dropped 88.32 points, or 0.72 percent, to 12,169.88. The Standard & Poor's 500 Index was down 9. 82 points, or 0.74 percent, to 1,321.15. The Nasdaq lost 14.07 points, or 0.50 percent, to 2,784.67.
