Wall Street skates in the fifth week of losses, hope remains (Reuters)

NEW YORK (Reuters) - Wall Street closed a fifth week of losses with more selling Friday after a sluggish jobs report strengthened the case that the slowdown in the economy, although analysts said index can stabilize in the short term.

Selling was heavy in the morning after the Payroll report and the S & P 500 tested intermittently its April low 1,294.70 up to a bullish report on the services sector has helped equities recover some losses.

Major indices are traded at their lowest level in six weeks, and the S & P is off the coast of 4.7% of highs reached in late April. However, saying stocks fund managers have a price in macroeconomic uncertainty now.

"We do not see material disadvantage of here,", said Jim McDonald, strategist at the investment Chief at base of Chicago Northern Trust Global investments, which has 650 billion in assets under management.

"A five percent correction is appropriate for the downturn that we experience, and in the intermediate term, our hope is that we will regain some momentum," he said.

Government payroll report showed 54 000 additional jobs in may, the lowest reading since September, while the US unemployment rate has increased by 9.1% to 9% in April.

The follow-up report these recent readings on manufacturing, housing and consumer all indicated to the slowdown in demand, which prompted debate among investors on the duration of economic softness. However, the reading on the sector of services to the United States, which includes the greater part of the economy, gave hope to improve the future data.

"Our view is that we clearly see a slowdown, but you would need a shock to the system to see things to get much worse here," said Andrew Goldberg, strategist at J.P. Morgan market fund in New York. "There is little room for error, but there are reasons to expect growth, and we do not see a devil disadvantage set much more."

The Dow Jones industrial average (.)(DJI) slid 97.29 points, or 0.79%, to end the 12,151.26. The Standard & Poor 500 Index (.)(SPX) fell 12.78 points or 0.97%, to 1,300.16. Nasdaq Composite Index (.)(IXIC) dropped by 40.53 points, or 1.46%, to 2,732.78.

Then only the S & P 500 closed above its low April, analysts said that if this level has been breached, technical momentum could take the index into its 200 day moving average at about 1,250.

All three indexes fell by 2.3% in the week in what was worst of the & S P 500 since mid-August.

However, stocks are still positive for the year, with index Dow Jones 5 percent, the S & P 500 rise of 3.4% and the Nasdaq up to 3 percent.

Newell Rubbermaid Inc. (SAS).(N) has been the biggest percentage loser the S & P 500 slipped 11.8 per cent to $14.96, after it cut its forecast for the year and said second-quarter results don't miss estimates.

Component of Dow Wal-Mart Stores Inc. (WMT).(N) announced a $ 15 billion stock-buyback program, to encourage the shareholders who have seen the stock GAL that its sales to the United States remain in prolonged recession. The stock edged 0.2 per cent to $53.66.

Forest Laboratories Inc. (FRX)(N) rallies to 3.7% at $36.90, and was the top gainer in the S & P 500 after he announced an accelerated stock repurchase plan.

Results outnumbered losers by a ratio of more than 2 to 1 on the New York Stock Exchange, while on the Nasdaq, about four stocks fell for all those who have increased.

Volume was light, with about 6.84 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, under the daily average of the year last $ 8.47 billion.

(Edited by Jan Paschal)

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