The unemployment report was much worse than expected and pushed

Dow off 223 as unemployment jumps

The dismal report on job losses startles traders. The S&P is now a loser on the year, and oil falls below $67.
Posted by Charley Blaine on Thursday, July 2, 2009 4:08 PM
Updated: 6:00 p.m. ET.



Investors won't be celebrating much over the July 4 weekend.



Not after the shock of a dreadful report on unemployment and payrolls and the drubbing they took from the stock market on Thursday.



The unemployment report was much worse than expected and pushed stocks sharply lower as investors apparently concluded that any economic recovery will be slow to start and slower to gain any momentum.



The Dow Jones industrials ($INDU) closed down 223 points, or 2.6%, to 8,281. The Nasdaq Composite Index ($COMPX) was off 49 points, or 2.7%, to 1,797, and the Standard & Poor's 500 Index ($INX) dropped 27 points, or 2.9%, to 896.



The selling came in light trading, however, and it's not clear if the trend will continue next week.



With the close, the Dow and the S&P 500 both finished lower for a third straight week -- their first three-week losing streak since March. In addition, the S&P 500 fell back into the red for 2009.



The Nasdaq suffered its second weekly loss in the last three weeks.



The markets will be closed Friday for the Independence Day holiday.