Stocks lower after poor jobs report

NEW YORK -- Stocks are falling in the opening moments of trading after a new report showed more job losses than expected in June.

The release of the Labor Department's unemployment figures for last month show that the nation's jobless rate rose to 9.5% from 9.4% in May.

Recession-weary employers cut a larger-than-expected 467,000 jobs in June, suggesting that the economy's road to recovery will be a bumpy one.

"This is part of the market recovery," said Roy Williams, CEO of Prestige Wealth Management. "You're going to get bad news."

He expects the unemployment rate is likely to reach 11%.

However, Williams also noted unemployment is a lagging indicator and other recent data have shown the economy is beginning to improve. After the market's surge from March lows, Williams said data such as the jobless figures will give investors pause and sell stocks.

Overseas markets were also lower after a report showed unemployment in the 16 countries that use the euro rose to a 10-year high in May. That reinforced concerns that any recovery in the global economy will take time.

Markets kicked off the third quarter on Wednesday with gains after getting some reassuring data on manufacturing and housing. Traders were encouraged by a report showing more stable manufacturing activity and another indicating the fourth straight monthly rise in pending home sales.

The Commerce Department offered some upbeat news with the release of a report showing orders to factories jumped in May by the largest amount in nearly a year. Total orders rose 1.2% in May, better than the 0.8% increase that economists had expected.

Meanwhile, bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.55% from 3.54% late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.17% from 0.16% late Wednesday.