July 2nd, 2010
07:43 PM ET

Stocks, dollar, oil prices take hit after weak June jobs report

A look at the day's business headlines:

Stocks end at new 2010 lows

Stocks ended a volatile session lower Friday, with major indexes ending at new 2010 lows following a weaker-than-expected June jobs report.

The Dow Jones industrial average lost 46 points, or 0.5 percent, after having been on both sides of the unchanged line through the session. The Nasdaq composite slipped  9 points, or 0.5 percent and the S&P 500 index dropped 0.5 percent as well.

The Dow and Nasdaq ended at fresh 8-month lows and the S&P 500 at 9-month lows. Stocks slid through most of the day as investors digested the jobs report ahead of a long holiday weekend. All U.S. financial markets are closed Monday in observance of Independence Day. 

Stocks have tumbled in recent weeks, with the S&P 500 down more than 15 percent since the April highs on worries about the European debt crisis and U.S. economy. Stocks lost ground Thursday following worse-than-expected economic readings on manufacturing and housing. 

On Friday, the jobs report provided little relief, showing a rise in private sector hiring that was smaller than expected, and a drop in the overall
number of jobs.

Oil drops near $72
 
Oil prices declined for a fifth straight session Friday after an employment report showed the first drop in U.S. payrolls this year.

Crude oil futures for August delivery fell 81 cents, or more than 1 percent, to $72.14 a barrel after seesawing in earlier trading.

Disappointing economic news this week has increased fears about the strength of the global economic recovery, pushing oil more than 8 percent lower.

The national average price for a gallon of regular unleaded gas decreased to $2.750, down 0.4 cent from the previous day's price of $2.754 according to motorist group AAA.

The Labor Department said employers shed 125,000 jobs in June, the first decline in payrolls this year, as the Census Bureau cut the temporary workers it had brought on to conduct the decennial U.S. population count.

Dollar slips after jobs report
 
The dollar turned lower against major rivals Friday as investors digested the government's June employment report that showed a loss in jobs.

The dollar fell 0.25 percent against the euro to $1.2550 and dropped 0.09 percent against the pound to $1.5197. The greenback edged down 0.2 percent against the Japanese yen to ¥87.79.

The Labor Department said that payrolls shed 125,000 jobs in June, but the unemployment rate fell to 9.5 percent, the lowest since June 2009. The rate fell despite the job losses because so many discouraged job seekers have stopped looking for work.

Treasurys mixed after jobs report 

Treasury prices were mixed Friday after an employment report from the government showed the first monthly decline in U.S. payrolls this year.

The price of the 10-year note fell 8/32 to 104-15/32 and its yield held steady at 2.98 percent. The 2-year bond was flat at 100 with a yield of 0.63%, and the 5-year note held steady at 100-10/32, yielding 1.82 percent. Meanwhile, the 30-year bond fell 27/32 to 107-19/32 with a 3.94 percent yield.

Demand for the safety of government debt was tepid after a report showed a larger-than-expected monthly decline in jobs, as investors entered a long holiday weekend. The Labor Department said 125,000 jobs were lost last month, the first decline in U.S. payrolls this year. The drop was largely due to the loss of 225,000 census jobs that had inflated payrolls by 433,000 net jobs in the previous month.

 CNNMoney.com reporters Alexandra Twin and Hibah Yousuf contributed to this report.

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