US STOCKS-Wall St falls after payrolls; Apple to join Dow
* Feb payrolls top expectations
* Apple to replace AT&T in Dow Industrials
* Financials up after Fed stress tests
* Indexes off: Dow 0.88 pct, S&P 0.77 pct, Nasdaq 0.5 pct (Updates to late morning, adds comments)
By Chuck Mikolajczak
NEW YORK, March 6 (Reuters) - U.S. stocks retreated on Friday, with the S&P 500 poised for its second straight weekly drop, as a strong monthly jobs report cemented expectations for an interest rate hike by the U.S. Federal Reserve this year and possibly sooner than anticipated.
Nonfarm payrolls rose 295,000 last month, topping estimates for a gain of 240,000 jobs, after a downward-revised 239,000 gain in January. The unemployment rate ticked down to 5.5 percent from 5.7 percent in January.
"This report is encouraging, it will continue to keep them on a path to raise (rates) this year; our call is not June, it's a little bit later than that but it's this year nonetheless," said Lori Heinel, chief market strategist, State Street Global Advisors in Boston.
"If we do see start to see some signs of firming in the inflation numbers in particular, then we would have greater confidence around that." Continuación...