Stocks Fall After Jobs Miss, Lose 4.5% for Week

Stocks skidded Friday after disappointing reports on jobs and factory orders, capping a dismal week in which the Dow lost 4.5 percent.

The Dow Jones Industrial Average fell 46.05 today, or 0.5 percent, to end the week at 9,686.48. Today marked the seventh straight decline for the Dow.

All US financial markets will be closed Monday for the Fourth of July holiday.

Consumer discretionary was the biggest declining sector amid worries about the recovery, along with industrials and financials.

Financials suffered amid worries that the sector won't meet its second-quarter earnings projection. Bank of America/Merrill slashed its estimates this week for five of the largest banks and more are expected next week.

GE, Caterpillar and Bank of Americawere the Dow's bottom three.

Verizon and Microsoft were among the few Dow gainers.

Factory orders fell 1.4 percentMay, nearly triple of what economists had expected.

The report is another blow to the recovery as early signs had indicated that manufacturing was leading this recovery even as the consumer remained sluggish.

Employers slashed 125,000 jobsfrom nonfarm payrolls last month, about 10,000 more than expected, while the unemployment rate, which is based on a household survey, actually slipped to 9.5 percent. It was the first decline in payrolls in six months.

Within that report, manufacturing hiring actually rose by 9,000, though construction hiring fell by 22,000. Private hiring overall rose 83,000. The biggest drag was loss of 225,000 temporary Census workers.

The dollar fell against the euro after the disappointing economic reports.

Walmart fell after the company said its merchandising chief is leaving, the second executive departure in a week.

Tesla had another down day but still finished out the week above its offering price by more than $2.

Apple slipped after the company acknowledged an iPhone glitchthat overstates the number of bars, or signal strength, on the phone and frequently drops calls. The company promised a fix.

Drug stocks were among the only sectors that showed strength after a report that Sanofi-Aventis was preparing for a $20 billion US acquisition. Allergan and Biogen were among the names being tossed around. Both stocks jumped more than 5 percent.

And Verizon rose amid rumors this week that company may soon launch an iPhone with Verizon service.

Volume was low, given the Fourth of July holiday: Just 1.1 billion shares changed hands on the New York Stock Exchange. Decliners outpaced advancers, nearly 8 to 3.

The market endured its worst week since the "flash crash" in early May, with the emergence of the "death cross," where the 50-day moving average on the S&P falls through the 200-day moving average.

10 out of 10 key S&P sector finished lower, led by financials, which dropped 7.5 percent. Materials and industrials each lost more than 6 percent.

Commodities took a beating with some shorting going on there: Oil fell more than 8 percent, closing out the week at $72.14 a barrel, while gold dropped nearly 4 percent, ending at $1,207.70 an ounce.

Next week, the calendar is pretty light, with the market closed Monday for the Fourth of July holiday. A couple of reports to note: the ISM services index on Tuesday and the June retail-sales reports on Thursday. No major earnings reports.

On Tap for Next Week:

MONDAY: All US financial markets closed for the Fourth of July holiday
TUESDAY: ISM services index; World Cup semi-finals start
WEDNESDAY: Weekly mortgage apps; Challenger job cuts; Fed's Kocherlakota, Lacker speak; Earnings from Family Dollar
THURSDAY: June chain-store sales; weekly jobless claims; consumer credit
FRIDAY: Wholesale trade