Stocks fade as traders worry about unemployment

       The stock market extended its slide Wednesday as investors worried that a weak job market will trip up a recovery in the U.S. economy.
       Stocks posted modest losses, a day after tumbling on fears about banks and concerns that a six-month rally of more than 50% has left the stock market overheated.The Dow Jones industrial average lost another 30 points after skidding 186 points Tuesday.
       A private sector report on unemployment gave investors new reason to fret about what is widely seen as the biggest problem facing the economy. The ADP National Employment Report found that employment fell by 298,000 in August following a revised loss of 360,000 jobs in July. The losses were the smallest since September 2008 but more than analysts had expected.
       The report shapes expectations for the Labour Departments monthly reading on jobs, which is due today. Unemployment has hit consumer spending,which accounts for about 70% of US economic activity. Without more help from consumers, the economy will have trouble pulling out of the longest recession since World War II.Until todays data comes, no one is really making any big bets, said Neil Massa, senior trader at MFC Global Investment Management.A little profit-taking looks healthy at this point.
       Analysts said the markets ability to avoid another steep drop was a good sign but cautioned that trading volume remains light ahead of the Labour Day holiday. Light volume can skew the markets moves and makes it difficult to draw conclusions about investor sentiment.We need these periods of backing off, said Darin Newsom, senior analyst at DTN in Omaha, Nebraska.When there is no news to really spark the interest that we need to take this thing higher, the inclination is to sell off.
       Even with stocks down for four straight days, major market indicators have given up less than two weeks worth of gains. The Standard & Poors 500 is still up 47.5% since from a 12-year low on March 9.
       The Dow fell 29.93, or 0.3%, to 9,280.67. The S&P 500 index fell 3.29, or 0.3%, to 994.75, while the Nasdaq composite index fell 1.82, or 0.1%, to 1,967.07.
       Bond prices rose, pushing down yields. The yield on the benchmar k 10-year Treasury note fell to 3.30%from 3.36% late Tuesday.
       The dollar was mixed against other major currencies, while gold prices rose.
       Light, sweet crude finished unchanged at $68.05 a barrel on the New York Mercantile Exchange.
       In other trading, the Russell 2000 index of smaller companies fell 1.22, or 0.2%, to 556.84.
       Three stocks fell for every two that rose on the New York Stock Exchange, where volume came to 1.4 billion shares compared with 1.6 billion Tuesday.
       The S&P 500 has climbed about 47% from a 12-year closing low in early March, leading some investors to speculate that a correction may be on the way.
       Mi nutes from the most recent meeting of the Federal Reserve, released earlier in the day, showed improved outlook in August, but market reaction was muted.
       On the Nasdaq, Dell Inc was up 0.9% at $15.35, helping the tech-heavy index cap some losses. Shares of Leap Wireless International also climbed 7.5% to $17.71 on speculation that AT&T was interested in buying the wireless service provider.
       Another bright spot in Wednesdays market was the health insurance group. WellCare Health gained 1.9% to $23.62 while Aetna Inc climbed 2.9% to $28.68.AP
       LONDON 4,817.55 -2.15
       Britains top share index closed flat on Wednesday as a retreat in financials and miners, pressured by weak US data, was offset by stronger energy stocks,after agiant oil find by BP.
       The FTSE 100 ended down 2.15 points at 4,817.55,after it fell 1.8% on Tuesday.
       In Frankfurt, the DAX index ended at 5,319.84 points, down 7.45 or 0.14%. In Paris, the CAC-40 index closed at 3,573.13 points, down 10.31 or 0.29%.
       US pr ivate employers cut 298,000 jobs in August according to the ADP National Employment Report, more than the 250,000 mean forecast in a Reuters poll.Investors are looking for excuses to take profits and the (ADP data) gives more cause for concern about prospects for the worlds biggest economy, said Jeremy Batstone-Carr, analyst at Charles Stanley.
       Banks, whose performance typically closely mirrors wider risk appetite, suffered as confidence ebbed that the UK and global economy is heading for a swift rebound.
       Lloyds Banking Group was the hardest hit in the sector, down 6.2%, after Britains Guardian newspaper reported that Lloyds has won backing from its investors to raise 10 billion pounds to reduce its dependence on the taxpayer.
       But Lloyds has not canvassed major investors over a rights issue, a top 15 shareholder said.
       Royal Bank of Scotland, Barclays, HSBC and Standard Chartered shed 0.6-4%.
       Also among financials, life insurers were weaker,with Legal & General, Aviva, Old Mutual and Prudential off between 2.1 and 8.7%.
       Britains blue-chip index rose 6.5% in August, and is up 39% since hitting its lowest level in over six years in March.
       Also fuelling caution about the economic outlook, US factor y orders rose a smaller-than-expected 1.3% in July.Macro data has moved to centre stage and given the r ise in share prices, investors now need to see proof in the real economy that things are improving.
       Reinforcing the more cautious tones investors have adopted since the start of the month, G20 countries still think it is too early to remove the huge fiscal and monetary stimulus thrown into their economies, a UK government source said on Wednesday.
       Mining stocks took the most points off the index,under pressure against a background of softer metals prices, with Antofagasta, Lonmin, Kazakhmys and Rio Tinto down 1.6-4.3%.
       Energy stocks gained after BP made agiant oil discovery in the Gulf of Mexico and as crude held near $68 a barrel after falls the previous session.
       BP climbed 4.3% while Royal Dutch Shell gained 1.1% and BG Group added 1.8%, though Tullow Oil fell 1%.
       Retailers we re in demand as Banc of AmericaMerrill Lynch reinstated coverage on 10 general retail stocks as it launched combined coverage of the food and general retail sector.
       Wm. Morrison, which was among the brokers top UK sector picks, put on 3.6%, while Tesco gained 1%and Sainsbury rose 0.3%.
       Tobacco stocks also found favour, benefiting from their defensive status, with British American Tobacco and Imperial Tobacco both 1.5% firmer.
       Investors await the minutes from the last US Federal Reserves policy meeting of August 11-12 due at 1800 GMT.
       Ex-dividend factors knocked 2.79 points off the FTSE 100 index, with BHP Billiton, Capita, Fr iends Provident, Serco, L&G and TUI Travel all losing their payout attractions.