* U.S. data shows more labor market decline
* Jobless rate jumps to nearly 5-year high
* Nokia's warns on outlook for mobile phones
* Dow off 0.8 pct, S&P 500 down 1 pct, Nasdaq off 1.1 pct
(Updates to midmorning)
By Ellis Mnyandu
NEW YORK, Sept 5 (Reuters) - U.S. stocks fell for a fifth
straight day on Friday as a government report showing further
deterioration in the U.S. labor market added to worries about
the profit outlook and the impact of the housing slump on the
economy.
The news the unemployment rate soared to 6.1 percent last
month -- nearly a five-year high -- from 5.7 percent in July
diminished investors' appetite for riskier assets and drove
them toward safe-haven government debt.
Declining stocks included diversified manufacturer 3M
<MMM.N>, down 1.4 percent. Chip makers also slid after Nokia
<NOK1V.HE>, the world's top mobile phone maker, warned on its
market share outlook.
Qualcomm <QCOM.O>, off nearly 2 percent, was the top drag
on Nasdaq, followed by BlackBerry maker Research In Motion
<RIM.TO><RIMM.O>, down more than 3 percent. Investors also
sold-off shares of energy companies. Exxon Mobil <XOM.N> was
down 1.4 percent on signs a global economic slowdown would mean
less demand for energy.
The Labor Department said 84,000 jobs were lost in August,
up from the 75,000 economists had expected. June and July job
losses were also revised up.
"I think a lot of this jobs number has to do with
dislocations in certain parts in the economy," said Owen
Fitzpatrick, head of U.S. equity group at Deutsche Bank Private
Wealth Management in New York.
"I think this slowdown/recession is largely being led by
issues within the finance industry and the fact that the
commodities base was driven so high by global demand."
The Dow Jones industrial average <> slid 89.64 points,
or 0.80 percent, to 11,098.59. The Standard & Poor's 500 Index
<.SPX> fell 12.03 points, or 0.97 percent, to 1,224.80. The
Nasdaq Composite Index <> dropped 23.87 points, or 1.06
percent, to 2,235.17.
The slide on Wall Street, coming after Thursday's sell-off,
meant the S&P was close to retesting its July 15 low, having
wiped all of its gains since then. Barring a late recovery, the
the S&P 500 appeared on track to notch its worst week since
January.
Shares of 3M fell to $69.03 while International Business
Machines Corp <IBM.N> declined 0.5 percent to $114.38.
On Nasdaq, Qualcomm shares fell to $47.85, while Research
In Motion declined to $103.85. Analysts say technology is among
sectors most vulnerable to a global slowdown due to exposure to
overseas markets.
Texas Instruments <TXN.N>, a chip maker, was another
casualty of the Nokia warning, falling 1.3 percent to $22.12 on
the New York Stock Exchange.
Exxon Mobil shares fell to $75.07 as U.S. crude dropped
$2.44 to $105.46 a barrel.
Merrill Lynch <MER.N> shares dropped 2 percent to $25.70
after Goldman Sachs cut the investment bank to a "sell" and
said it will likely incur additional write-downs for soured
mortgage investments.
(Additional reporting by Kristina Cooke; Editing by Kenneth
Barry)
