US STOCKS-Wall St dips as momentum stocks drag; Nasdaq slumps
* Payrolls roughly in line with expectations
* Mylan up on report of Meda AB buy
* Boeing considers Mercury Systems acquisition
* Indexes off: Dow 0.05 pct, S&P 0.21 pct, Nasdaq 1.4 pct (Updates to open)
By Chuck Mikolajczak
NEW YORK, April 4 (Reuters) - U.S. stocks dipped on Friday and the Nasdaq fell sharply as weakness in momentum stocks weighed on indexes and erased earlier gains in the wake of the March payrolls report.
After appearing to stabilize earlier in the week, momentum stocks such as biotechs fell for a second straight session. The Nasdaq biotech index lost 2.8 percent. Biogen Idec Inc fell 4.3 percent to $288.98.
"You've got some big names in there. There is a high correlation inside of those groups," said Keith Bliss, senior vice-president at Cuttone & Co in New York. "Managers tend to trade the entire group as opposed to individual names. So that of course, is hitting the Nasdaq and everybody else."
Equities opened higher on optimism spurred by the nonfarm payrolls report, which showed jobs rose by 192,000 in March, just shy of the 200,000 forecast, after rising 197,000 in February. The unemployment rate was unchanged at 6.7 percent. With a solid pace of hiring for a second month, the economy appears to be recovering from a winter slowdown. Continuación...