Stocks slump after June employment report. Dow, S&P 500 and Nasdaq all down over 2%.
By Alexandra Twin, CNNMoney.com senior writer
Last Updated: July 2, 2009: 2:04 PM ET
NEW YORK (CNNMoney.com) -- Wall Street retreated Thursday, with the major market gauges all off at least 2%, as a worse-than-expected jobs report exacerbated fears that the recession could drag on longer than has been thought.
The Dow Jones industrial average (INDU) fell 175 points, or 2.1%, with 2 hours left in the session. The S&P 500 (SPX) index lost 21 points, or 2.3%, and the Nasdaq (COMP) fell 44 points, or 2.4%.
Employers cut 467,000 jobs from their payrolls in June, after cutting 322,000 jobs in May, the Labor Department reported Thursday. That made June the first month in four in which job losses rose from the previous month. Economists surveyed by Briefing.com expected 365,000 job losses.
The unemployment rate, generated by a separate survey, rose to 9.5% from 9.4%, short of forecasts for an increase to 9.6%.
"The report was terrible," said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc."It's telling us that there is a lot more pain than people realize that we are going to have to get through before there can be a recovery."
Bilibala comments
job pos cut more than my expect, but unemployment rate up lesser than my expect. This is not a good signal for a recover. Most of the "out of expected" fall claim from business and government. Got to see the July data in order to form a trend analysis and direction of the economy.
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