By Dominique Paul, Research Analyst

The major equity indices are trending deep in the red following the Bureau of Labor Statistics releasing its February employment report.  The street was blown away by the 295,000 jobs created. However, energy services job continued to decline and job additions took a back seat as observers realized that the unemployment rate, which was 5.7% in January, declined to 5.5% because of workers leaving the labor force.   The market is jittery now on fears that the Federal Reserve will begin hiking rates sooner rather than later as many were anticipating.

Also out this morning was a read on the US international trade balance which narrowed for the month of January. Currently, the US trade international balance stands at a deficit of $41.8 billion, in-line with consensus estimates. The report indicates that the December deficit was revised to $45.6 billion versus an earlier estimate of $46.6 billion. After falling 0.9% in December, exports in January continued the downward trend, descending 2.9% for the month. Imports also dropped substantially in January by 3.9%, wiping out the 1.8% gain observed in December. The declines stem from a few different reasons including the drop in oil prices, operations moving slowly at ports on the West Coast, and demand for American-made products decreasing in response to the strong dollar.

Later this afternoon, the consumer credit report will be released.