US Equities Markets End Lower Friday as US Economy Adds More Jobs Than Expected

Consumer stocks declined late Friday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) falling 1.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) dropping 1%.

In corporate news, Capri's Versace brand is being considered as a possible acquisition by Italian luxury retailer Prada, Italian newspaper Il Sole 24 reported. Capri shares jumped past 10%.

TKO-owned Ultimate Fighting Championship is aiming to get more than $1 billion a year from its next media rights deal with Walt Disney's ESPN, Bloomberg reported Friday. TKO and Disney shares were each down about 1.3%.

Constellation Brands on Friday lowered its annual sales outlook after its fiscal Q3 results missed Wall Street's expectations. Its shares fell past 16%.

Delta Air Lines reported better-than-expected Q4 results on Friday amid robust travel demand while the carrier said it expects full-year earnings growth of over 10%. Its shares spiked past 8%.

Energy stocks were mixed late Friday afternoon, with the NYSE Energy Sector Index easing 0.1% and the Energy Select Sector SPDR Fund (XLE) up 0.1%.

The Philadelphia Oil Service Sector index was down 0.2%, and the Dow Jones US Utilities index was shedding 0.5%.

In sector news, the US plans to sanction 180 tankers, dozens of oil traders, two oil companies, and some oil executives in Russia, Reuters reported, citing a document circulating among traders in Asia and Europe whose veracity the news agency "could not verify."

Front-month West Texas Intermediate crude oil jumped 3.6% to $76.55 a barrel, and the global benchmark Brent crude contract spiked 3.5% to $79.64 a barrel. Henry Hub natural gas futures surged 7.5% to $3.98 per 1 million BTU.

In corporate news, Plains All American Pipeline shares rose 0.9% after Wolfe upgraded the stock to outperform from peer perform, with a price target of $22.

Constellation Energy agreed to buy privately held energy company Calpine in a cash-and-stock deal for a net price of $26.6 billion, including debt. Constellation shares surged 24%.

Edison International's Southern California Edison unit said that no fire agencies have suggested that its equipment was involved in the Eaton Fire in Los Angeles. Edison International shares were down 5.9%.

Kinder Morgan temporarily shut down its SFPP West and CALNEV fuel pipelines in Los Angeles on Jan. 8 due to power outages caused by the wildfires, Reuters reported. Kinder Morgan shares were shedding 0.8%.

Constellation Brands' 3Q report was a rare instance in which the company logged painful misses across its portfolio, including in the beer category, Bernstein analysts say in a research note. Beer depletions growth missed their forecasts and the Wall Street consensus, as did shipments growth, the analysts say. Gross margin beat estimates, but operating income didn't due to higher spending on marketing and bigger deprecation costs, the analysts say. The wine and spirits categories also meaningfully missed forecasts as challenging market conditions persist in the U.S. wholesale channel for most price segments of the wine category, the analysts say. (dean.seal@wsj.com)

US benchmark equity indexes were lower intraday, while Treasury yields surged as markets assessed official data showing that the economy added more jobs than expected in December.

The Dow Jones Industrial Average and the Nasdaq Composite were down 1.2% each at 42,149.3 and 19,252.9, respectively, after midday Friday. The S&P 500 fell 1.1% to 5,854.7. Among sectors, financials and real estate saw the biggest drops. Only energy and communication services were in the green.

US stock markets were closed Thursday to mourn the passing of former President Jimmy Carter.

In economic news, total US nonfarm payrolls rose by 256,000 last month, the Bureau of Labor Statistics reported. The consensus was for a 165,000 increase, according to a survey compiled by Bloomberg.

"This was a robust employment report that reinforces the resilience of the US labor market and expansion and will keep the (Federal Reserve) on hold in January as they try to bring inflation pressures down," BMO said.

Markets are widely expecting the central bank's Federal Open Market Committee to leave interest rates unchanged later this month, according to the CME FedWatch tool.

The US two-year yield jumped 11.4 basis point to 4.38% intraday, while the 10-year rate gained 8.2 basis points to 4.76%.

In company news, Constellation Brands shares sank 17%, the worst performer on the S&P 500, as the beer and wine company lowered its annual sales outlook after its fiscal third-quarter results missed Wall Street's expectations.

Walt Disney's ESPN, Fox , and Warner Bros. Discovery said they will not launch their planned Venu Sports streaming service. Warner Bros. shares tumbled 5.1%, the second-worst Nasdaq performer, while Disney lost 0.4%. Fox's class A and B shares dropped more than 1.5% each.

Constellation Energy agreed to acquire privately held energy company Calpine in a cash-and-stock deal for a net price of $26.6 billion, including debt. Constellation Energy's shares soared nearly 27%, the best performer on the Nasdaq and the second-best on the S&P 500.

Walgreens Boots Alliance was the top gainer on the S&P 500, up 28%, after the drugstore chain logged better-than-expected fiscal first-quarter results buoyed by sales growth across its divisions. The company reiterated its full-year earnings outlook amid a challenging US retail environment.

West Texas Intermediate crude oil rose 3.1% to $76.19 a barrel intraday. "Oil prices gained, driven by concerns over potential supply disruptions due to increased sanctions on Russia and Iran," D.A. Davidson said in a note to clients.

Gold was up 0.9% at $2,713.20 per troy ounce, while silver increased 0.8% to $31.25 per ounce.