Stocks Bounce Around After U.S. Jobs Report

U.S. stocks down again Friday after a morning of up-and-down trading.

Major market indexes were falling as traders threatened on fears that European leaders will not able to contain a spreading financial crisis. Many fear that officials lack the tools to rescue Italy or Spain if one of those countries defaults before a larger bailout fund is in place.

Shares was going up early Friday after the government said hiring picked up slightly in July. The rally started  less than half an hour.

Shortly after noon, the Dow was down 191 points, or 1.7 percent, at 11,191. The S&P 500 was down 26 points, or 2.3 percent, at 1,172. The Nasdaq composite was down 83, or 3.2 percent, at 2,475.

The Dow fell 512 points Thursday, its worst day since 2008.

European leaders are calling emergency meetings and seeking to reassure markets that a large nation such as Italy or Spain won't become the latest country in the region to need a financial backstop.

A U.S. government report that  improved in July sent stocks sharply higher just after the market opened. The Dow Jones industrial average raised as many as 171 points but gave up those losses by midmorning. An hour after the opening bell, the Dow was down 7 points.

The economy added 117,000 new jobs in July, and hiring in May and June were not as bad as reported previously, the Labor Department reported. The unemployment rate inched down to 9.1 percent from 9.2 percent, partly because some unemployed workers stopped looking for work. Health care providers and manufacturers added jobs in US Economy.

The  report failed to lift the spirits of traders a day after the Dow plunged 513 points. It was the worst day for the Dow since the financial crisis of 2008.

In late-morning trading the Dow was fall 42 points, or 0.37 percent, at 11,341. The S&P 500 was down 5 points, or 0.5 percent, at 1,194. The Nasdaq composite was down 21 or 0.8 %, at 2,535.

Overseas markets also fell. Tokyo, Hong Kong and China, India, Pakistan all closed down 4 percent. Taiwan lost 6 percent. In Europe, shares recovered some of their losses after plunging to their lowest levels in more than a year. Germany's DAX fell 1.4 percent. Other indexes showed smaller losses.