U.S. Stocks Fall To Lowest Since 2006 As Jobs Data Spur Slowdown Concern (Elizabeth Stanton)

Created by : Francis Goodwin View profile

March 7 (Bloomberg) -- U.S. stocks fell for a second day after the biggest drop in jobs since 2003 sent energy and mining stocks lower, overshadowing an advance in banks spurred by a Federal Reserve plan to make more cash available to lenders.

Chevron Corp., Alcoa Inc. and Boeing Co. led declines that sent the Dow Jones Industrial Average below 12,000 for the first time in two months and the Standard & Poor's 500 Index to its lowest level since August 2006. Wells Fargo & Co. and CIT Group Inc. gained, helping spur a 2.5 percent advance in financial stocks during the final 90 minutes of trading.

The S&P 500 retreated 10.97 points, or 0.8 percent, to 1,293.37. The Dow average lost 146.7, or 1.2 percent, to 11,893.69. The Nasdaq Composite Index decreased 8.01, or 0.4 percent, to 2,212.49. About five shares fell for every three that rose on the New York Stock Exchange.

``This is definitely bad news,'' Ed Peters, chief investment officer at PanAgora Asset Management in Boston, which manages $25 billion, said of the jobs report. ``It increases the chance for a real recession happening if consumers start to pull back significantly.''

The S&P 500 extended its weekly decline to 2.8 percent after the Labor Department reported a loss of 63,000 jobs last month, defying economists forecasts for a gain of 23,000. The benchmark for U.S. equities is down 12 percent this year on concern that the first decline in home prices since the Great Depression and record foreclosures will curb bank lending. The Dow fell 3 percent for the week and the Nasdaq lost 2.6 percent.