Europe debt issues spur another selloff

STOCKS SLUMPED for a fifth straight session as investors fretted over Europe’s debt issues yet again and braced for the start of corporate earnings season.

The Dow tumbled more than 200 points, suffering its worst drop of the year.

The market’s steep selloff comes on the heels of its best first quarter in more than a decade.

A jump in Spain and Italy’s borrowing costs reignited fears Europe’s debt problems are not contained.

“This is the result of a flareup in an old problem, which is Europe,” James Dunigan, managing executive of investments at The PNC Financial Services Group told the Daily News. “After a fairly quiet first quarter, we see those problems popping up again.”

The Dow, which this month has lost nearly half of the gains it made in January through March, fell 214 points, or 1.6%, to12,716.

The S&P 500 dropped 1.7% to 1,359, while the Nasdaq Composite fell 1.8% to 2,991.

Investors have been jittery this week after data on Friday showed growth in the job market in March was weaker than anticipated. The economy created only about half as many jobs as it had in the prior month, raising fears consumer spending could take a hit.

They’re also on edge ahead of a flood of quarterly earnings reports. Profits at S&P 500 companies are expected to show their smallest quarterly gain since the end of the recession.