Stocks fell Wednesday, dragging the Dow Jones industrial average down from its highest level since 2007, as data showed companies added fewer jobs than economists projected and eurozone unemployment rose to a 15-year high.
The Dow lost 10.75 points to 13,268.57. The Standard & Poor's 500 index slid 3.51 points to 1402.31. The Nasdaq composite rose 9.41 points to 3059.85.
"The labor market is weak, at best," says Keith Wirtz at Fifth Third Asset Management. "While we thought that we were gaining some momentum, more recent data suggest that things are sluggish. If we start to see a cascade of negative news, the market is going to be vulnerable."
Stocks fell as U.S. companies added 119,000 workers in April, the fewest in seven months, according to a private report. Concern about Europe's economy also drove stocks lower. The jobless rate in the eurozone rose to 10.9% in March, manufacturing contracted last month, and unemployment in Germany unexpectedly rose.
The drop in stocks came after the S&P 500 rose to the highest level in almost a month Tuesday. The payroll survey intensified concern that Labor Department data this week may show the U.S. isn't growing fast enough to cut unemployment.
"I've got a feeling that we might see a downside surprise on the monthly jobs report," says Randy Frederick at Charles Schwab. "Given how high the market is right now and this softening in economic data, it's very likely to see a pullback in the range of 5% to 10%."
Highlights: D.R. Horton added 57 cents, or 3.4%, to $17.22 amid a rally in home builders' stocks. An International Strategy & Investment home builders' sales survey reached the highest point in six years. Lennar rose 76 cents to $29.02, and PulteGroup, 24 cents to $10.27.
American Eagle Outfitters climbed $3.01 to $20.90 for the biggest advance since 2000. The teen-clothing retailer said first-quarter profit rose to 18 cents to 20 cents a share, beating the average analyst estimate of 10 cents.
Bankrate plunged $3.52 to $20.19. The online publisher of personal finance information reported first-quarter earnings and revenue that fell short of the average analyst estimate.
Ceva retreated $5.03 to $17.55. The chip designer cut its 2012 revenue forecast to no more than $61.2 million.
Charming Shoppes rallied $1.41 to $7.31. The owner of the Lane Bryant chain, which specializes in women's plus-size apparel, agreed to be bought by Ascena Retail Group for $890 million.
