(By Balachander) U.S. stocks closed on a sharply lower note after a government data showed the world's largest economy added fewer jobs than forecast in June, renewing worries that the growth is losing momentum.
S&P 500 Index dropped 0.94 percent to finish at 1,354.68. The Dow Jones Industrial Average shed 0.96 percent to end at 12,772.32. The Nasdaq Composite Index tumbled 1.30 percent to close at 2,937.33.
Payrolls rose by 80,000 in June following the addition of an upwardly revised 77,000 jobs in May, a report from the Labor Department showed. Economists expected a gain of 90,000 jobs. Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Unemployment rate held steady at 8.2 percent.
Hot Stocks Of The Day: INFA, NAV, XRTX, STX, APKT, LF, SHP
In corporate news, Informatica Corp. (NASDAQ:INFA) tumbled 27.62 percent after the California-based software maker warned that second-quarter earnings and revenue will be short of its guidance, saying the company did not adapt as rapidly as it should have to the changing macroeconomic environment.
Navistar International Corp. (NYSE:NAV) slumped 15.18 percent. The truck manufacturer said it expects to introduce its advanced clean engine technology early next year to meet current U.S. emission rules. Investor were concerned about costs the company will have to incur related to the new technology.
Xyratex Ltd. (NASDAQ:XRTX) gained 5.97 percent after the provider of data-storage systems following its second quarter earnings that came in above Wall Street projections as margins improved. The company also guided third-quarter earnings above consensus estimates.
Seagate Technology Plc (NASDAQ:STX) reduced its revenue and gross margin guidance for the fourth quarter ended June 29, hit by an isolated supplier quality issue and it cut shipments due to the industry's faster-than-expected recovery from their supply chain disruption. Shares edged lower.
Acme Packet Inc. (NASDAQ:APKT) slumped 14.40 percent after the provider of networking services forecast second-quarter earnings and revenue that trailed market expectations, citing continued weakness in the North American market.
LeapFrog Enterprises Inc. (NYSE:LF) declined 2.02 percent after the developer of multimedia learning platforms for children announced the resgination of chief financial officer Mark Etnyre to pursue personal interests.
ShangPharma Corp. (NYSE:SHP) jumped 15.55 percent after the China-based pharmaceutical company received a private buyout offer from Chief Executive Michael Xin Hui, valuing the company at $8.50 to $9.50 per American Depositary Share.
European markets closed in red amid disappointing jobs data from the United States. Germany's DAX retreated 1.92 percent to close at 6,738.90. France's CAC40 tumbled 1.88 percent to finish at 3,168.79. U.K.'s FTSE 100 fell 0.53 percent to end at 5,662.63.
Among Asian markets, China's Shanghai Stock Exchange Composite Index rebounded 1.05 percent to close at 2,224.55. Japan's Nikkei 225 fell 0.65 percent to end at 9,020.75. Hong Kong's Hang Seng Index edged 0.04 percent lower to end at 19,800.64. India's BSE Sensex finished at 17,521.12, down 0.10 percent.
Commodity & Currency Scan:
Crude oil futures dropped 3.51 percent to $84.160 per barrel and natural gas futures retreated 5.77 percent to $2.775 per million metric British thermal units. Gold futures declined 1.64 percent to $1,583.00 per ounce and silver futures tumbled 2.21 percent to $27.06 per ounce.
In the currency market, the euro shed 0.87 percent against the U.S. dollar to 1.2283. The British pound fell 0.25 percent against the greenback to 1.5487, and the dollar declined 0.36 percent against the Japanese yen to 79.6300.