Global stocks and oil fall on grim U.S. jobs report

By Herbert Lash

NEW YORK (Reuters) - Global stocks fell while the dollar and bond prices rose on Friday after data showing deep U.S. job losses in December underscored the toll the recession may take on corporate profits and the struggling economy.

Oil prices fell more than 5 percent to below $40 a barrel at one point as a jump in the December unemployment rate to 7.2 percent -- the highest since January 1993 -- deepened the already dark outlook for the consumer-driven U.S. economy.

While payrolls were slashed a bit less than forecast, economists had expected a lower jobless rate of 7 percent.

Chevron (CVX.N) led a slide in energy shares on both sides of the Atlantic after it joined a growing list of companies issuing profit warnings.

U.S. technology shares also took a beating, causing the Nasdaq to briefly wipe out year-to-date gains as such tech bellwethers as Apple (AAPL.O) fell.

"We just keep seeing bad news. That's all we ever see," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, Ohio. "We really have to see the economy, housing show some type of life."

Shortly before 1 p.m., the Dow Jones industrial average .DJI fell 100.91 points, or 1.15 percent, to 8,641.55. The Standard & Poor's 500 Index .SPX slipped 13.80 points, or 1.52 percent, at 895.93. The Nasdaq Composite Index .IXIC shed 30.69 points, or 1.90 percent, at 1,586.32.

Chevron stock fell 1.4 percent, while Apple shares shed 1.9 percent.