* 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 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
"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.
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)