US STOCKS-Markets tumble on weak jobs data, Europe fears

                                
   * May payrolls report far weaker than expected
                                
 * Europe shares fall on banks, Hungary budget concerns
                                
 * BP avoids decision on paying dividend
                                
 * Indexes down: Dow 1.8 pct, S&P 1.7 pct, Nasdaq 1.5 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
                                
 By Ryan Vlastelica
                                
 NEW YORK, June 4 (Reuters) - U.S. stocks fell sharply on
Friday after the May payrolls report showed private hiring was
much lower than expected, raising fears about the strength of
the economic recovery.
                                
 The Labor Department said 431,000 jobs were added to the
U.S. economy, but of that total, 411,000 workers were hired for
the U.S. Census. Wall Street looked for payrolls to rise by
513,000. For details, see [ID:nN03243431]
                                
 "This shows that there's not much in the economy able to
generate ongoing jobs growth, and that raises the question of
the sustainability of the recovery," said Joseph Battipaglia,
market strategist at Stifel Nicolaus in Yardley, Pennsylvania.
                                
 Wall Street tracked European equities, which fell on
concerns about Societe Generale's <SOGN.PA> derivatives
business. Also, worries intensified that Europe's sovereign
debt troubles could spread after a Hungarian official said the
country was at risk of a Greek-style crisis. The euro fell to a
four-year low against the dollar. [ID:nLDE65317T]
                                
 Financial stocks were pressured by the jobs data and
problems in Europe. The KBW Banks index <.BKX> and S&P
Financial sector <.GSPF> both fell almost 2 percent. JPMorgan
Chase & Co <JPM.N> shed 1.4 percent to $38.56, while Wells
Fargo & Co <WFC.N> slumped 2 percent to $28.33.
                                
 The Dow Jones industrial average <.DJI> was down 180.24
points, or 1.76 percent, at 10,075.04. The Standard & Poor's
500 Index <.SPX> was down 18.55 points, or 1.68 percent, at
1,084.28. The Nasdaq Composite Index <.IXIC> was down 33.40
points, or 1.45 percent, at 2,269.63.
                                
 There have been nine days since 1998 when payrolls data was
reported and the SPDR S&P 500 exchange-traded fund (ETF) <SPY>
opened down 1 percent or more, according to Bespoke Investment
Group. On those days, the fund rose an average of 1.2 percent
from open to close.
                                
 The ETF was down 1.7 percent on Friday.
                                
 Chris Burba, a short-term market technician at Standard &
Poor's in New York, cited a support level for the S&P 500 at
1,070, a recent low for the index. If the S&P closes below that
level, he said, "the risk of sustaining a decline beneath the
February low would increase."
                                
 BP Plc <BP.N><BP.L> avoided a decision on whether to pay
its next quarterly dividend as it faced heavy political
pressure to put the payout on hold while it fights the oil
spill into the Gulf of Mexico. BP's U.S.-listed shares fell 3
percent to $38.13. [ID:nN0444097]
                                
 Dow component McDonald's Corp <MCD.N> fell almost 1 percent
to $67.26 after it recalled 12 million "Shrek"-themed drinking
glasses. U.S. officials warned consumers to stop using them
because they contain the toxic metal cadmium. [ID:nN04112229]
                                
 Decliners outnumbered advancers on the New York Stock
Exchange by a ratio of more than 12-to-one, while about 20
stocks fell on the Nasdaq for every one that rose.
  (Editing by Jeffrey Benkoe)