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UPI NewsTrack Business

Friday, June 04, 2010 5:01 PM

NEW YORK, June 4 (UPI) -- U.S. markets tumbled hard Friday on employment news and continued erosion of the euro, hampered by concerns over debt in Europe.

The Labor Department said the jobless rate fell from 9.9 percent to 9.7 percent, but private-sector job growth slowed sharply from a month ago with 41,000 jobs added, compared with 290,000 in April.

The bulk of new jobs in May came from hiring 411,000 temporary census workers.

The euro, at $1.50 six months ago, dropped under $1.20, most recently trading at $1.1976, signaling debt-burdened countries in Europe would fall into default, affecting even the stronger nations, such as Germany, that share the euro as currency.

By close, the Dow Jones industrial average lost 324.06 points, 3.16 percent, to 9,931.22, its lowest close since early February. The Standard & Poor's 500 index lost 3.44 percent, 37.95 points, to 1,064.88. The Nasdaq composite index lost 3.64 percent, 83.86 points, to 2,219.17.

On the New York Stock Exchange, 289 stocks advanced and 2,790 declined on a volume of 5.1 billion shares traded.

The benchmark 10-year treasury note rose 1 14/32 to yield 3.202 percent.

Against the yen, the dollar fell to 91.88 yen from Thursday's 92.63 yen.

In Japan, the Nikkei 225 index lost 0.13 percent, 13.00, to 9,901.19.

In Britain, the FTSE 100 index dropped 1.63 percent, 85.18, to 5,126.00.

Marchionne pushes Michigan to fund DRIC

DETROIT, June 4 (UPI) -- Chrysler Group Chief Executive Officer Sergio Marchionne pushed the state of Michigan to approve funding for a new bridge from Detroit to Windsor, Canada.

In effect, Marchionne, who took over Chrysler when Fiat assumed 20 percent ownership of Chrysler and control of the automaker last summer, injected himself into state politics for the first time, The Detroit News reported Friday.

Funding for the Detroit River International Crossing has been approved in Michigan's House but faces an uphill battle for approval by the state Senate, the newspaper said.

Marchionne, in a speech at the Mackinac Policy Conference on Mackinac Island, said, "I want to make it clear that Chrysler strongly supports the proposed DRIC."

Chrysler alone relies on 1,300 shipments and 2,000 vehicles crossing the U.S.-Canadian border each day. The automobile industry on the whole counts on $100 million in goods shipped back and forth from Canada to Detroit every day, Marchionne said.

The industry counts on an international flow of finished goods, parts, raw materials and commuters going to and from work.

"Smooth crossing is essential," Marchionne said.

The new bridge, estimated to cost $1.8 billion, would also create 10,000 construction jobs and support 30,000 supplemental jobs, Marchionne said.



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