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Eurozone worries push US stocks lower

Two separate data reports signaled that the job market continued to improve in December. Payrolls firm ADP reported a huge surge in private-sector hiring, at a net 325,000 jobs, much higher than forecasts.

Toyota unveiled its Etios Motor Racing series at the Auto Expo 2012
Toyota unveiled its Etios Motor Racing series at the Auto Expo 2012

US stocks opened lower Thursday, with a dimming picture for the eurozone economy overshadowing data showing a promising jump in US private-sector hiring in December.

Around 1515 GMT, the Dow Jones Industrial Average was down 81.32 points (0.65 per cent) at 12,337.10.

The broader S&P 500 fell 6.59 (0.52 per cent) to 1,270.71, while the tech-dominated Nasdaq Composite lost 3.24 (0.12 per cent) to 2,645.12.

Two separate data reports signaled that the job market continued to improve in December. Payrolls firm ADP reported a huge surge in private-sector hiring, at a net 325,000 jobs, much higher than forecasts.

The government's weekly report on new claims for unemployment compensation, an indicator of the pace of layoffs, meanwhile fell slightly, confirming the steady downtrend of the past two months.

But eurozone worries continued to hold the markets back, with the euro falling on heightened worries about the economy and banking sector in Spain.

Also depressing sentiment were the results of France's first debt auction of the year, which saw higher rates and lower demand.

"The French bond auction this morning saw decent demand but rising yields showed a deterioration in investor confidence in France's ability to maintain its top-notch credit rating," said City Index analyst Joshua Raymond.

Shares of retailer Target sank 4.8 per cent after it cut its fourth-quarter earnings outlook, citing disappointing sales during the November-December holiday season.

Monsanto, the farm seeds giant, surged 4.8 per cent after its fiscal first-quarter earnings beat market estimates.

On the Nasdaq, shares of disk drive maker Seagate pushed up 6.9 per cent after it reported revenues for its second quarter that beat analyst forecasts.

The company was less affected than its competitors by the flooding in Thailand, the global disk-drive hub. 

Bond prices rose. The yield on the 10-year Treasury fell to 1.96 per cent from 2.0 per cent on Wednesday, while the 30-year was at 3.01 per cent down from 3.04 per cent.

Bond prices and yields move in opposite directions.