Stocks went from moderately negative in the premarket to a straight out decline on Thursday as the Labor Department released its Employment Situation for the month of June. Employers cut a larger-than-expected 467,000 jobs in June and the unemployment rate climbed to a 26-year high of 9.5 %; compared to Wall Street estimates of 350,000 job losses with an unemployment rate of 9.6%.The Dow Jones industrials lost 223.32, or 2.6 %, to 8,280.74, the lowest close since May 22. The Standard & Poor’s 500 index fell 26.91, or 2.9 %, to 896.42 and the Nasdaq composite index fell 49.20, or 2.7 %, to 1,796.52. The Russell 2000 index of smaller companies fell 19.61, or 3.8 %, to 497.85.

Investors moved out of equities and into bonds, driving the yield on the 10 year U.S. Treasury note to 3.50% Energy prices tumbled on fear of slow economic growth and lagging demand. Crude futures declined almost 8% for the week, hovering around $66 per barrel for August delivery.

Morning Outlook

World markets fell sharply Monday as traders returned from the weekend still weary over the latest jobs report out of the Unites States. Overnight in Asia, Japan’s Nikkei 225 stock average fell 135.20, or 1.4 %, to 9,680.87 and Hong Kong’s Hang Seng dropped 226.23, or 1.2 %, to 17,977.17.

In Europe, the FTSE 100 index of leading British shares was down 50.70 points, or 1.2 %, at 4,185.58 while Germany’s DAX declined 79.29 points, or 1.7 %, to 4,628.92. The CAC-40 in France was 47.40 points, or 1.5 %, lower at 3,072.11.

Traders return to Wall Street after a long holiday weekend. The market looks to open sharply lower after those traders who were not in action on Thursday look to catch up on the selling. Markets will get some more direction as Alcoa (AA) Wednesday will lead off earnings season.

Before the opening bell, and a 10 AM report on the service sector, the major averages are seeing declines of over 1%. Dow Jones industrial average futures are down 86 at 8,155. Standard & Poor’s 500 index futures are losing 9 at 884, while Nasdaq 100 index futures are 13 points in the red at 1,432.

Currencies and Commodities

The dollar traded at 95.24 yen, falling 0.833% in the currency market. The euro depreciated 0.6014% to $ 1.3895 while the pound lost 1.3% to $1.6121. Gold fell on the stronger dollar, losing $9 to $922 an ounce, while silver tumbled 2.30% at $13.10. Light, sweet crude for August delivery continued to move downwards in a price correction on worries of a faltering recovery; a barrel of crude lost $2.97 to $63.76 on the NYMEX; a 4.45% drop.

Economic Calendar

10:00
ISM Non-Mfg Index: A compilation from 60 non manufacturing sectors across the economic spectrum. The index helps gauge strengths and weaknesses within the economy. The composite index for the month of June is expected to have a reading of 46.7; the composite index from the ISM non-manufacturing survey rose nearly 30 basis points in May to 44.