(By Balachander) U.S. stocks slumped as report showing employers in America added fewer workers than expected renewed worries about the strength of economic recovery.
S&P 500 Index retreated 1.61 percent to finish at 1,369.10. The Dow Jones Industrial Average lost 1.28 percent to end at 13,038.04. The Nasdaq Composite Index tumbled 2.25 percent to close at 2,956.34.
On Friday, the U.S. non-farm payrolls report showed that just 115,000 jobs were added in April, trailing economists forecast of addition of 170,000 jobs. Private non-farm payrolls showed 130,000 jobs were added in April, below economists estimate of 175,000 jobs. However, unemployment rate dipped to 8.1 percent from 8.2 percent.
Investors were also cautious ahead of elections in France and Greece over the weekend amid ongoing debt crisis in Europe.
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In corporate news, LinkedIn Corp. (NYSE:LNKD) rallied 7.2 percent after the professional-networking website posted a jump in quarterly earnings on revenues that doubled from last year. The company, which announced acquisition of professional content sharing community SlideShare for $118.8 million, also raised its revenue forecast for 2012.
American International Group Inc. (NYSE:AIG) dropped 3.8 percent. AIG's shares were up over 46 percent so far this year and there are expectations that the U.S. Treasury will soon sell a part of the 70 percent stake in the insurer.
Estee Lauder Companies Inc. (NYSE:EL) retreated 5.3 percent after the maker of skin care and fragrance products guided fourth-quarter earnings below consensus. EL sees Q4 EPS, before charges, between 11 cents and 16 cents, trailing market expectations of 20 cents. Certain European countries, Japan and Australia are soft due to ongoing economic uncertainties and volatility in financial markets, the company said.
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Southwestern Energy Co. (NYSE:SWN) tumbled 7.2 percent after the natural gas and oil explorer posted a drop in first-quarter earnings and revenue, missing market expectations, amid low gas prices. EPS declined to 31 cents from 39 cents, trailing consensus estimate of 32 cents. Revenue declined to $656.5 million from $676.3 million.
DigitalGlobe Inc. (NYSE:DGI) spiked 21.6 percent after GeoEye Inc.