CORRECTED – US STOCKS-Wall Street tumbles for 2nd day on euro zone, jobs

(Corrects final paragraph to show Dow briefly slipped below
10,000 on Thursday, but didn’t close there)

* Mixed bag: Payrolls fall, jobless rate declines

* Euro zone fiscal worries linger

* Volatility spikes 12 pct

* Dow off 1.4 pct; S&P down 1.6 pct; Nasdaq off 1.1 pct

* For up-to-the-minute market news, click [STXNEWS/US]
(Updates to afternoon trading, change byline)

By Angela Moon

NEW YORK, Feb 5 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) fell on Friday,
failing to recover from the previous day’s brutal selloff,
after U.S. jobs data pointed to a slow recovery and investors
worried about the health of the euro zone’s weakest economies.

European policymakers scrambled to reassure markets about
the stability of the 16-nation currency bloc, and Portugal
backed a law that may push its swollen deficit higher.

“Continued worries about the credit situations in Europe,
the dollar’s strength, the disappointing jobs numbers … are
all building up to a crescendo heading into the weekend,” said
Tom Schrader, managing director, U.S. equity trading at Stifel
Nicolaus Capital Markets in Baltimore.

“There is much lack of confidence in the markets.”

The Dow Jones industrial average (.DJI: ) was down 138.15
points, or 1.38 percent, at 9,864.03. The Standard & Poor’s 500
Index (.SPX: ) fell 16.64 points, or 1.57 percent, at 1,046.47.
The Nasdaq Composite Index (.IXIC: ) dropped 23.53 points, or
1.11 percent, at 2,101.90.

The biggest losers included industrial shares, with Boeing
Co (BA.N: ) down 3 percent at $57.51 and General Electric Co
(GE.N: ) off 4.6 percent at $15.30.

U.S. employers unexpectedly cut 20,000 jobs in January, but
the unemployment rate dropped to a five-month low of 9.7
percent, the Labor Department reported. For details, see
[ID:nN04115255]

“The unemployment data wasn’t all that negative. There were
some bright spots. But again, it further indicated that the
solution to the problem will take a long time to be resolved. ”
said Peter Cardillo, chief market economist at Avalon Partners
in New York.

Reflecting investor anxiety, the CBOE Volatility Index
(.VIX: ), a closely watched measure of Wall Street sentiment,
rose nearly 12 percent to 29.13, adding to a 20 percent jump in
the previous session.

The euro fell (Read more about the trembling euro. ) to its lowest level against the dollar since
May, as the cost of insuring Greek, Portuguese and Spanish
government debt rose to record highs, and investors sought the
perceived safe haven of the greenback. [ID:nSGE61407V]

U.S. crude futures (CLc1: ) fell 3.2 percent, pressured by
the rallying dollar, and weighed on energy shares.
Exxon Mobil Corp (XOM.N: ) declined 1.2 percent to $63.98. An S&P
index of energy shares (.GSPE: ) slid 2.1 percent.

Some positive notes came from the corporate arena.

U.S. meat producer Tyson Foods Inc (TSN.N: ) reported a much
larger-than-expected first-quarter profit (Read more your timing to make a profit.). Its stock shot up
4.8 percent to $14.67. [ID:nN05241624]

Health insurer Aetna Inc (AET.N: ) offered signs of a
turnaround next year, offsetting a disappointing quarterly
profit report and 2010 forecast. The stock dipped 0.2 percent
to $29.17. [ID:nN05139992]

The Dow industrials briefly slipped below 10,000 on
Thursday, with overall stocks suffering their worst daily
declines in nine months.

Investing Basics

(Reporting by Angela Moon; editing by Jeffrey Benkoe)

CORRECTED – US STOCKS-Wall Street tumbles for 2nd day on euro zone, jobs