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NEW YORK -- The nation's weakest unemployment report in 16 months sent the stock market tumbling today as investors, fearful about the economy's direction, unloaded technology shares and retreated to energy and health care sectors. Analysts said the selloff also reflected Wall Street's worries that the unemployment numbers, while weak, would not be disappointing enough to persuade the Federal Reserve to cut interest rates again before its next meeting in March. Dow falls 119.53;
Nasdaq sinks 122Associated Press
The Dow Jones industrial average closed down 119.53 to 10,864.10. The tech-dominated Nasdaq composite index slid 122.28 to 2,660.51. The Standard & Poor's 500 index lost 24.00 to reach 1,349.47. Decliners led advancers 6 to 5 on the New York Stock Exchange, with 1,701 down, 1,370 up and 192 unchanged. Volume was 1.04 billion shares vs. 1.09 billion yesterday. The NYSE composite index fell 6.35 to 660.22, the American Stock Exchange composite index dropped 6.98 to 921.85 and the Russell 2000 index fell 7.43 to 501.51. The Treasury's 10-year note fell 17/32 to 104 14/32; its yield rose 7 basis points to 5.15 percent. The 30-year bond lost 110 23/32; its yield rose 5 basis points to 5.51 percent.
"The market is responding to all the negative data we've been getting and saying this economy is very, very weak and you're likely to have more companies announcing layoffs," said Hugh Johnson, chief investment officer at First Albany Corp.