STOCKS SLAMMED AFTER THE JOBS REPORT: Here's what you need to know

Stocks fell sharply on Friday after the jobs report showed a drop in the unemployment rate to a seven-year low, with job gains below expectations.

The Dow dropped more than 300 points during the session, a 2% loss, and all its components were in the red. The major indexes have closed down about 3% for the week.

First, the scoreboard:

• Dow: 16,090.75, -284.01, (-1.73%)
• S&P 500: 1,919.71, -31.42, (-1.61%)
• Nasdaq: 4,679.19, -54.30, (-1.15%)

And now, the top stories on Friday:

1. The unemployment rate fell to 5.1% in August, the lowest since April 2008. This was lower than forecast, and put the measure in the middle of the 5.2% - 5.0% range the Federal Reserve considers to be "full employment." The economy added 173,000 jobs, below the expectation for 217,000, although August payrolls are usually revised higher. We also saw some wage growth, with average hourly earnings rising 0.3% month-on-month, and 2.5% year-over-year. The payrolls gain for July was revised up to 245,000 from 215,000.
2. This was the final big data release before the Fed's meeting later this month, when some economists anticipate its first rate hike in several years. Arguing for a move, Bank of Tokyo-Mitsubishi's Chris Rupkey wrote in a note to clients, "Net, net, the monthly jobs report delivers the goods, the report is a solid one and it qualifies as the some further improvement in the economy that [the] Fed is waiting for before raising rates. We would be shocked if the Fed delays liftoff any further. September 17 is their date with destiny." However, Goldman Sachs described the report as "a mix of hits and misses", and maintained their call that the Fed won't move this month.
3. In a speech before the jobs report release, Richmond Fed president Jeffrey Lacker said the labor market bolsters the case for raising rates. He said, "Unemployment is close to pre-recession levels, real GDP growth has been slow but steady, and inflation is tracking our objective. I am not arguing that the economy is perfect, but nor is it on the ropes, requiring zero interest rates to get it back into the ring."
4. The oil rig count tumbled for the first time in seven weeks. According to driller Baker Hughes, the oil rig tally fell by 13 to 662 this week, the steepest decline since late May.

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