U.S. blue-chip stocks dropped for a second straight session Thursday after another dose of soft economic data worried investors as they readied for a key jobs report. The Dow Jones Industrial Average closed down 41.59 points, or 0.34%, at 12248.55, after dropping close to 100 points midsession. The Standard & Poor's 500-stock index fell 1.61, or 0.12%, to 1312.94, with consumer staples leading decliners. The technology-oriented Nasdaq Composite eked out a gain of 4.12 to 2773.31. Thursday's action follows a 280-point plunge in the blue-chip Dow, when stocks suffered their biggest declines since the middle of last year. A confluence of weak readings on the U.S. economy has weighed on sentiment and made Friday's nonfarm payrolls report take on greater than usual significance. Wal-Mart led blue-chip stocks lower, falling 1.4%. Chevron lost 1.3% after a government report showed U.S. crude-oil inventories unexpectedly rose last week, showing thinner demand. Goldman Sachs Group shed 1.3% after word that the company has received a civil subpoena from the Manhattan district attorney's office. In a further sign of a slowing U.S. economy, factory orders fell in April due in part to weaker sales of big-ticket items such as motor vehicles, machinery and computers. Other data showed that initial unemployment claims edged lower last week, but remained at an elevated level.

European stock markets ended Thursday with heavy losses as investors absorbed the latest downgrade on Greek sovereign debt while fretting over a slew of recent economic data that paint a picture of slowing global growth. The Stoxx Europe 600 index closed down 1.3% at 274.70, dragged lower by heavily weighted oil majors BP PLC and Total SA down 2.3% and 2.4%, respectively, in step with a fall for oil futures. Also weighing on sentiment was the prior day's news that Moody's Investors Service cut Greece's sovereign rating to Caa1 from B1, assigning a negative outlook. The move came late in the U.S. session. The Greece ASE Composite index shed 1%, with Hellenic Telecommunications Organization off 3.9% and Coca-Cola Hellenic Bottling Co. down 2%. Media reports said Greece will present a new austerity plan Friday as talks between the country and European Union, International Monetary Fund and European Central Bank officials wind down. The German DAX 30 index closed down 2% at 7,074.12. Losses were widespread across sectors, with tech stocks Infineon Technologies AG down 2.4% and SAP AG off 2.1%. In Paris, shares of Alcatel-Lucent SA led decliners, off 3.9% after an analyst said U.S. rival Juniper Networks Inc. was off to a slow start in June. The French CAC 40 index, also weighed by losses for Total, ended the day 1.9% lower at 3,889.87. Among Paris-listed banks, BNP Paribas PLC fell 2.6%. Resources, retail and financials drove losses for London's FTSE 100 index, which fell 1.4% to 5,847.92. Heavyweight Rio Tinto PLC sank 2.6% and Antofagasta PLC sank 3.1% as metals prices fell. Elsewhere, Bank of Ireland rallied more than 17%, while Banco Comercial Portugues SA rose 3.5%.

Asian share markets tumbled Thursday, after some very weak U.S. data raised questions about future demand for Asian exports and fed into worries about the trajectory of global growth. Stocks fell across the board in many regional markets after U.S. ADP jobs data for May fell far short of market expectations. Trading in Tokyo was taking place against a background of political uncertainty, related to a no-confidence motion by Japan's opposition parties against Prime Minister Naoto Kan. In the end it was defeated by the lower house of parliament, 293-152. Japan's Nikkei Stock Average fell 1.7% to 9555.04, South Korea's Kospi dropped 1.3% to 2114.20, and China's Shanghai Composite index was down 1.4% at 2705.18. Hong Kong's Hang Seng Index gave up 1.6% to 23253.84. Several exporters were hit hard in Asia, with Nintendo falling 3.7% and Fanuc dropping 2.6% in Tokyo, Samsung Electronics sliding 3.1% in Seoul and Acer plunging by the daily 7% limit in Taipei. Computer maker Lenovo Group dropped 2.9% in Hong Kong a day after announcing a EUR465 million ($670 million) deal to buy Germany's Medion. Many financial stocks also weakened, with HSBC Holdings losing 1.8% in Hong Kong, Oversea-Chinese Banking slipping 0.7% in Singapore and KB Financial Group declining 2.3% in Seoul. Resource-sector stocks lost ground after commodities were sold down overnight. Japan's Inpex fell 2.9% and Cnooc dropped 2.2% in Hong Kong.

Copper closed below $9,000 a metric ton on the London Metal Exchange Thursday as disappointing economic data continued to stream from the U.S., prompting talk among market players of a deeper than expected short term correction for the red metal. Data relating to U.S. factory orders, business productivity and labor costs all painted a picture of a struggling economy Thursday, cementing market-wide risk aversion following a raft of weak manufacturing and employment data the previous day. LME three-month copper closed the open outcry session at $8,920 a metric ton, 2.0% below Wednesday's PM kerb close. Crude-oil futures settled nearly flat Thursday, rebounding from earlier lows and holding close to the key $100 a barrel mark as traders await more signals on the strength of the U.S. economy. Light, sweet crude oil for July delivery settled 11 cents higher at $100.40 a barrel on the New York Mercantile Exchange, after dropping as low as $98.46 a barrel earlier in the session. Brent crude oil on the ICE futures exchange ended $1.04 higher at $115.57 a barrel. Oil prices fluctuated between gains and losses for much of Thursday's session. A government report showing increases in oil and gasoline stockpiles initially pushed crude oil lower, but prices quickly returned to the middle of a trading range between $95 and $105 that has held oil since mid May. Weak economic data clouded industrial demand prospects for silver, platinum and palladium, while gold prices slipped as investors moved to cash in recent gains. U.S. factory orders fell 1.2% in April as demand for big ticket items such as cars, machinery, metals, computers and electrical equipment declined. Silver futures posted sharp declines on the news, as it is widely used in high-end electronics and as a chemical catalyst. Silver for July delivery, the most actively traded contract, fell $1.492, or 4%, to $36.202 a troy ounce on the Comex division of the New York Mercantile exchange. June delivery silver fell $1.489, or 4%, to settle at $36.200 a troy ounce. Nymex palladium for September delivery ended down $8.70, or 1.1%, to settle at $770.40 a troy ounce. Platinum for July delivery fell $6.10, or 0.3%, to settle at $1,817.80 a troy ounce. The most actively traded gold contract, for August delivery, finished down $10.50, or 0.7%, at $1,532.70 a troy ounce on the Comex division of the New York Mercantile Exchange. June-delivery gold fell $10.40, or 0.7%, to $1,532.00 a troy ounce.