Even The Kids Know...Stop The Madness In November

Stocks see worst day of the year after weak jobs report

http://marketday.msnbc.msn.com/_news/2012/06/01/12011363-stocks-see-worst-day-of-the-year-after-weak-jobs-report?lite
A gloomy U.S. jobs report and signs of a global economic slowdown hammered Wall Street Friday, wiping out the stock market’s gains for 2012 and leaving investors wondering where to turn.
The Dow Jones industrial average sank 275 points, or 2.2 percent, chalking up its biggest one-day drop since November. The market index closed down 0.8 percent for the year and off 2.7 percent for the week.
Market participants had expected to see a mildly negative employment report Friday, but they “hadn’t discounted the kind of numbers we saw this morning,” Barton Biggs, a hedge fund manager at Traxis Partners, told CNBC Friday.
Biggs also warned that the chance of a “mild double-dip recession” is now about 40 percent.
“I’m not that bearish about the economy and the market, but am I ready to step in in a big way? No,” he said.
Friday’s jobs report from the Labor Department showed the U.S. economy created only 69,000 jobs in May, the fewest in a year, as the nation’s unemployment rate rose to 8.2 percent from 8.1 percent in April -- the first increase in 11 months.
The government also said the economy created far fewer jobs in the previous two months than first thought, revising numbers down to show 49,000 fewer jobs created.
Friday’s steep market drop spooked investors. The VIX index, a measure of investor fear, rose to levels not seen in five months. And the value of government bonds and gold soared as investors sought safe places to park their money.
The weak U.S. outlook added to a growing global sense of gloom. New data from the euro zone Friday showed unemployment in the region was 11 percent in April -- the highest level since records began in 1995. And there are signs that manufacturing in China -- a driver of global growth in the recession -- is slowing.
Many had looked to the U.S. as a bright spot of growth in the global economy, but Friday’s jobs report added more evidence to the view that growth in the U.S. is slowing, suggesting weaker corporate earnings ahead and weighing on stock prices.

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