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By: JeeYeon Park CNBC.com Writer
Stocks fell near session lows Friday, with all major indexes poised to finish in negative territory for the week, after a weaker-than-expected June non-farm payrolls report.
The Dow Jones Industrial Average declined more than 150 points, led by Caterpillar cnbc_comboQuoteMove('popup_CAT_ID0EFKAC15839609'); [CAT 83.95 -2.84 (-3.27%) ] cnbc_quoteComponent_init_getData("CAT","WSODQ_COMPONENT_CAT_ID0EFKAC15839609","WSODQ","true","ID0EFKAC15839609","off","false","inLineQuote"); and H-P cnbc_comboQuoteMove('popup_HPQ_ID0EFPAC15839609'); [HPQ 19.54 -0.74 (-3.65%) ] cnbc_quoteComponent_init_getData("HPQ","WSODQ_COMPONENT_HPQ_ID0EFPAC15839609","WSODQ","true","ID0EFPAC15839609","off","false","inLineQuote"); , after posting a loss in the previous session.
The S&P 500 and the Nasdaq also added to losses. The CBOE Volatility Index, widely considered the best gauge of fear in the market, climbed near 18.
All 10 S&P sectors were firmly in the red, led by industrials and techs.
Among financials, Deutsche Bank cnbc_comboQuoteMove('popup_DB_ID0EUJAE15839609'); [DB 33.565 -1.875 (-5.29%) ] cnbc_quoteComponent_init_getData("DB","WSODQ_COMPONENT_DB_ID0EUJAE15839609","WSODQ","true","ID0EUJAE15839609","off","false","inLineQuote"); tumbled more than 5 percent following reports German regulators are investigating the financial services company on possible Libor rate manipulation, according to sources. The probe comes a week after Barclays cnbc_comboQuoteMove('popup_BCS_ID0EVOAE15839609'); [BCS 10.2209 -0.2291 (-2.19%) ] cnbc_quoteComponent_init_getData("BCS","WSODQ_COMPONENT_BCS_ID0EVOAE15839609","WSODQ","true","ID0EVOAE15839609","off","false","inLineQuote"); was fined $453 million by U.S. and British authorities for calculating Libor rates.
Non-farm payrolls rose by 80,000, according to the Labor Department, missing expectations for a gain of 90,000 jobs, according to a Reuters poll. Meanwhile, the unemployment rate remained unchanged from May at 8.2, in line with predictions.
"The economic recovery is clearly stuck in quicksand as job creation remains anemic and layoff announcements soar," said Todd Schoenberger, managing principal at The BlackBay group. "It's going to be an extremely difficult second half of 2012 for Americans, as employment worries rise and the household balance sheet continues to deteriorate."
With yet another month of weak employment growth, the second quarter marks the weakest three-month period in two years, fueling optimism that the Federal Reserve will step in with additional monetary easing. Recent economic reports have been dismal with the ISM manufacturing index earlier this week indicating a contraction for the first time since 2009.
Major central banks around the world cut interest rates on Thursday, but their actions did little to lift equities. The European Central Bank cut rates by a quarter point and the Bank of England moved forward with more quantitative easing. In addition, the People's Bank of China moved forward with surprise rate cuts.
IMF Managing Director Christine Lagarde voiced concern over a slowdown in developed and big emerging economies echoing concerns voiced by ECB President Mario Draghi who said the euro zone economy would recover only gradually.
The euro briefly dipped below $1.23 against the U.S. greenback, trading near a two-year low.
Yahoo cnbc_comboQuoteMove('popup_YHOO_ID0EIYAE15839609'); [YHOO 15.77 -0.08 (-0.5%) ] cnbc_quoteComponent_init_getData("YHOO","WSODQ_COMPONENT_YHOO_ID0EIYAE15839609","WSODQ","true","ID0EIYAE15839609","off","false","inLineQuote"); is considering Hulu CEO Jason Kilar for its permanent CEO position, according to reports. Interim CEO Ross Levinsohn is also said to be a candidate, along with News Corp's cnbc_comboQuoteMove('popup_NWSA_ID0EJ4AE15839609'); [NWSA 22.10 -0.34 (-1.52%) ] cnbc_quoteComponent_init_getData("NWSA","WSODQ_COMPONENT_NWSA_ID0EJ4AE15839609","WSODQ","true","ID0EJ4AE15839609","off","false","inLineQuote"); Jonathan Miller.
Seagate Technology cnbc_comboQuoteMove('popup_STX_ID0EMCAG15839609'); [STX 24.26 -0.82 (-3.27%) ] cnbc_quoteComponent_init_getData("STX","WSODQ_COMPONENT_STX_ID0EMCAG15839609","WSODQ","true","ID0EMCAG15839609","off","false","inLineQuote"); slipped after the storage device maker said it expects to miss its fourth-quarter revenue estimates.
Also among techs, Informatica cnbc_comboQuoteMove('popup_INFA_ID0EPHAG15839609'); [INFA 30.30 -13.07 (-30.14%) ] cnbc_quoteComponent_init_getData("INFA","WSODQ_COMPONENT_INFA_ID0EPHAG15839609","WSODQ","true","ID0EPHAG15839609","off","false","inLineQuote"); plunged almost 30 percent after the data manager handed in a disappointing guidance due to worries over Europe. Rival data-storage company Teradata cnbc_comboQuoteMove('popup_TDC_ID0EQMAG15839609'); [TDC 65.12 -7.50 (-10.33%) ] cnbc_quoteComponent_init_getData("TDC","WSODQ_COMPONENT_TDC_ID0EQMAG15839609","WSODQ","true","ID0EQMAG15839609","off","false","inLineQuote"); tumbled nearly 10 percent.
Five big retailers including Walgreen cnbc_comboQuoteMove('popup_WAG_ID0EKUAG15839609'); [WAG 29.55 -0.32 (-1.07%) ] cnbc_quoteComponent_init_getData("WAG","WSODQ_COMPONENT_WAG_ID0EKUAG15839609","WSODQ","true","ID0EKUAG15839609","off","false","inLineQuote"); , Kroger cnbc_comboQuoteMove('popup_KR_ID0ELZAG15839609'); [KR 22.73 0.11 (+0.49%) ] cnbc_quoteComponent_init_getData("KR","WSODQ_COMPONENT_KR_ID0ELZAG15839609","WSODQ","true","ID0ELZAG15839609","off","false","inLineQuote"); , Safeway cnbc_comboQuoteMove('popup_SWY_ID0EM5AG15839609'); [SWY 17.60 -0.14 (-0.79%) ] cnbc_quoteComponent_init_getData("SWY","WSODQ_COMPONENT_SWY_ID0EM5AG15839609","WSODQ","true","ID0EM5AG15839609","off","false","inLineQuote"); , SuperValu cnbc_comboQuoteMove('popup_SVU_ID0ENDBG15839609'); [SVU 5.027 -0.013 (-0.26%) ] cnbc_quoteComponent_init_getData("SVU","WSODQ_COMPONENT_SVU_ID0ENDBG15839609","WSODQ","true","ID0ENDBG15839609","off","false","inLineQuote"); and HEB Grocery filed an antitrust lawsuit against Pfizer cnbc_comboQuoteMove('popup_PFE_ID0EGJBG15839609'); [PFE 22.40 -0.27 (-1.19%) ] cnbc_quoteComponent_init_getData("PFE","WSODQ_COMPONENT_PFE_ID0EGJBG15839609","WSODQ","true","ID0EGJBG15839609","off","false","inLineQuote"); and India's Ranbaxy Laboratories, accusing them of conspiring to delay sales of generic versions of the popular cholesterol drug Lipitor.
Goldman Sachs cnbc_comboQuoteMove('popup_GS_ID0EKOBG15839609'); [GS 95.16 -0.76 (-0.79%) ] cnbc_quoteComponent_init_getData("GS","WSODQ_COMPONENT_GS_ID0EKOBG15839609","WSODQ","true","ID0EKOBG15839609","off","false","inLineQuote"); has secured three properties in Tokyo for 25 billion yen ($313 million) as its asset management unit prepares to set up a private real estate investment trust (REIT), Shigeki Kiritani, the president of Goldman Sachs Asset Management (GSAM), told Reuters.
Dynegy filed for bankruptcy protection as part of its settlement agreement with creditors and said it will merge with its unit.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
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