The major stock averages end down between 2% and 3%, at or near the session's lows after disappointing job market and factory data. The trading session on the NYSE was extended by 15 minutes at day's end due to technical glitches. The broader DJIA and S&P 500 will close the books on a third straight weekly decline, the longest such streak since March, when stocks were hitting 12-year lows. All major averages will end 2% lower for the week.

Stocks saw a broad-based selloff after larger-than-expected job losses in June and a smaller-than-expected rise in May factory orders. Losses were exaggerated by thin trading volumes ahead of the three-day holiday weekend. Markets are closed on Friday for the 4th of July holiday.

Sending a jolt through stock trading, nonfarm payrolls shed 467,000 in June, more than the 325,000 decline expected.

The unemployment rate ticked higher to 9.5% in June from 9.4% in May. That rate is the highest in 26 years, although economists had expected the unemployment rate to rise even higher, to 9.6%. Average hourly earnings were flat at $18.53.

Meanwhile, May factory orders rose 1.2%, less than economists' average expectations for 1.4%. Excluding transportation equipment, new factory orders were up just 0.8%.

Around the world, the European Central Bank left its key interest rate at an all-time-low 1%, inaction that was widely expected in financial markets.

However, overseas markets were hurt after a report showed unemployment in the 16 countries that use the euro rose to a 10-year high in May.

Mergers and acquisitions news led headlines and provided the backdrop for a few rare stock gainers today.

Elan (ELN) and Johnson & Johnson (JNJ) confirmed earlier reports of a definitive agreement whereby Johnson & Johnson will acquire substantially all of the assets and rights of Elan related to its Alzheimer's Immunotherapy Program (AIP Program), through a newly formed company. In addition, Johnson & Johnson, through its affiliate, will invest $1 billion in Elan in exchange for newly issued American Depositary Receipts (ADRs) of Elan which will represent 18.4% of Elan's outstanding ordinary shares.

IPC Holdings (IPCR) is higher on hopes of a bidding war between Validus (VR) and Flagstone (FSR).

FCStone Group (FCSX) is softer despite a buyout from International Assets (IAAC) for $130 million in stock.