US STOCKS-Volatile trade, Greece debt fears hit Wall Street

* Fears of Greece contagion rattle markets

* Index gains for 2010 erased

* US economy adds 290,000 jobs in April, unemployment up

* Trading glitch may have contributed to Thursday tumble

* Dow off 1.2 pct, S&P off 1.3 pct, Nasdaq off 1.7 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to afternoon; changes byline)

By Angela Moon

NEW YORK, May 7 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) fell on Friday as
continued fears of a financial meltdown stemming from Greece’s
debt crisis and lingering questions about what triggered the
previous session’s dramatic plunge discouraged investors.

Stocks were off their lows in afternoon trading after an
early sell-off, but the major indexes turned negative for the
year.

“Europe’s debt crisis is a big issue that won’t go away
anytime soon. But with what happened yesterday, investors have
grown more concerned that the environment just isn’t safe,
period,” said Stephen Massocca, managing director at Wedbush
Morgan in San Francisco.

“Now isn’t exactly the time they want to buy stocks.”

The Dow Jones industrial average (.DJI: ) was down 113.59
points, or 1.08 percent, at 10,406.73. The Standard & Poor’s
500 Index (.SPX: ) was down 13.39 points, or 1.19 percent, at
1,114.76. The Nasdaq Composite Index (.IXIC: ) was down 43.11
points, or 1.86 percent, at 2,276.53. The indexes were on track
for their worst weekly decline since March 2009.

The Nasdaq fared worse as technology stocks led the broader
market lower. Apple Inc (Read more about Apple stock future.) (AAPL.O: ) fell 4.4 percent to $235.41
and Intel Corp (INTC.O: ) dipped 1.5 percent to 21.19.

Stocks gained some support from government data showing the
U.S. economy added jobs in April at the fastest pace in four
years. For details, see [ID:nN06115059]

LINGERING QUESTIONS

Governments around the world tried to calm markets after
fears about Greece’s debt crisis went global, with investors
seeing it as an omen of turmoil in other European economies.

Thursday’s plunge drove the Dow index nearly down 1,000
points — its biggest-ever intraday point drop.

The free-fall may have been exacerbated by erroneous trades
that showed some shares briefly fell to nearly zero. The Nasdaq
and other exchanges said they would cancel erroneous trades.
For a partial list of canceled trades see [ID:nN06145481].

The U.S. Securities and Exchange Commission held urgent
discussions with other regulators to try to shed light on the
causes of Thursday’s plunge. [ID:nN07263865]

Trades that took place during the worst of Thursday’s drop
will be canceled for more than 250 stocks, Nasdaq OMX said,
adding to a long list of “busted” transactions on NYSE
Euronext’s Arca and other exchanges and trading venues.

The uncertainty around these cancellations could be
heightening the day’s price swings as investors examine their
holdings.

“It could add to volatility because you have to unwind all
of that,” said Kurt Brunner, portfolio manager at Swarthmore
Group in Philadelphia.

The CBOE volatility index (.VIX: ) was up 16.43 percent to
38.19 after rising as high as 42.15 earlier in the day, its
highest since April 2009.

U.S. employers added 290,000 jobs in April, the Labor
Department said, and revised figures for February and March to
show 121,000 more jobs were added than previously thought. The
unemployment rate, however, rose to 9.9 percent as the size of
the labor force increased. [ID:nN06115059].

A Reuters poll of economists had forecast an April increase
of 200,000 jobs and an unemployment rate of 9.7 percent.

Stock Investing

(Additional reporting by Leah Schnurr; Editing by Padraic
Cassidy)

US STOCKS-Volatile trade, Greece debt fears hit Wall Street