U.S. stocks slide on economic worry

By Herbert Lash

NEW YORK (Reuters) - U.S. stocks dropped sharply and crude prices fell below $44 a barrel on Thursday after dismal economic news on both sides of the Atlantic renewed worries about the severity of a global slowdown.

Longer-dated U.S. government debt prices advanced ahead of what is expected to be a weak U.S. employment report for November on Friday, and after European central banks aggressively cut interest rates.

Oil fell more than 6 percent to its lowest level in nearly four years in response to bleak U.S. and European data, which could spell a deeper decline in energy demand worldwide.

"What we're seeing is a manifestation of a broader economic slowdown that's affecting all market sectors," said Fred Dickson, market strategist for D.A. Davidson & Co.

The number of U.S. workers on jobless benefits rolls hit a 26-year high in November, while leading U.S. retailers, with the exception of Wal-Mart Stores (WMT.N), reported lower sales last month.

Wal-Mart was one of only five stocks on the 30-component Dow to rise. Its gain was overshadowed by other corporate news, including a deluge of U.S. and European job cuts that signalled the recession is worsening.

Top U.S. phone company AT&T (T.N) said it would eliminate 12,000 jobs, and chemical maker DuPont (DD.N), announced it was cutting 2,500.

In Europe, Swiss bank Credit Suisse (CSGN.VX) announced 5,300 layoffs and Japanese broker Nomura Holdings (6501.T) said it would cut 1,000 jobs in London.