US STOCKS-Wall St tumbles on jobs data, euro zone fears

Thu Feb 4, 2010 10:37am EST

Related Topics

* MasterCard shares slide after results miss view

* Jobless claims rise unexpectedly in latest week

* European debt worries rattle markets, U.S. dollar climbs

* Indexes down: Dow 1.7 pct; S&P 2.0 pct; Nasdaq 2 pct

* For up-to-the-minute market news, click [STXNEWS/US] (Updates to morning trading, adds factory data)

By Rodrigo Campos

NEW YORK, Feb 4 (Reuters) - U.S. stocks slid 2 percent on Thursday after new applications for jobless insurance rose unexpectedly, and basic materials shares sank as a rising U.S. dollar hurt commodity prices

The greenback rose against a basket of currencies .DXY as the euro slid to a seven-month low against the dollar on worries over sovereign debt in Greece, Portugal and Spain. For details see [ID:nEUROPEAND]

Among materials shares, U.S. Steel Corp (X.N) fell 3.3 percent to $45.32 as the stronger dollar weakened commodity prices. The S&P materials sector index .GSPM dropped 3 percent, its biggest daily drop in two weeks.

Economic data also weighed on investors. Weekly initial claims for state unemployment benefits rose unexpectedly, the government said, pointing to stubborn weakness in the labor market. [ID:nN04233513]

"At this point in the 'recovery,' there is concern about jobs," said Kim Caughey, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

"The higher than expected (jobless claims) number indicates we're probably not in the job creation phase at this point."

Jobs creation is essential for a U.S. economic recovery since consumer spending makes up about two-thirds of the U.S. economy.

The Dow Jones industrial average .DJI dropped 176.24 points, or 1.72 percent, to 10,094.31. The Standard & Poor's 500 Index .SPX fell 22.26 points, or 2.03 percent, to 1,075.02. The Nasdaq Composite Index .IXIC lost 41.70 points, or 1.90 percent, to 2,149.21.

Weighing on financial shares, MasterCard Inc (MA.N) tumbled 7 percent to $230.27 after it posted quarterly earnings that fell short of Wall Street estimates. [ID:nN03182930] (Editing by Jeffrey Benkoe)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.