NATIONAL: Business Highlights 

Jobless data sends stocks reeling; Dow loses 223

NEW YORK (AP) — Major stock indexes fell more than 2.6 percent after the government said the U.S. unemployment rate hit a 26-year high. The Dow Jones industrials lost 223.32 to close at 8,280.74, their lowest level in six weeks.

Trading on the New York Stock Exchange was extended until 4:15 p.m. Eastern time in order to execute customer orders impacted by system irregularities, an NYSE spokeswoman said.

As investors sold off stocks amid fresh concerns about the economy, they moved into the safety of bonds, pushing Treasury yields lower.

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467K jobs cut in June; jobless rate at 9.5 percent

WASHINGTON (AP) — Employers cut a larger-than-expected 467,000 jobs in June and the unemployment rate climbed to a 26-year high of 9.5 percent. Workers also saw weekly wages fall, suggesting Americans will have little appetite to spend and the economy's road to recovery will be bumpy.

The Labor Department report, released Thursday, showed that even as the recession flashes signs of easing, companies likely will want to keep a lid on costs and be wary of hiring until they feel certain the economy is on solid ground.

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2 more banks fail as FDIC seeks stronger rules for sale of failed banks

WASHINGTON (AP) — Two Illinois banks were shuttered Thursday as government regulators proposed new rules for private equity firms seeking to take over failed banks.

Regulators shut down John Warner Bank of Clinton, Ill., and First State Bank of Winchester in Winchester, Ill., bringing to 47 the number of U.S. bank failures this year.

Private equity firms seeking to buy failed banks, meanwhile, would face strict capitalization and disclosure requirements under government rules proposed Thursday that some regulators already warn may go too far.

The Federal Deposit Insurance Corp. is seeking to expand the number of potential buyers for the growing number of banks it has closed during the financial crisis. With mounting interest from private equity firms, whose methods and motives aren't always clear, the FDIC is trying to set requirements to ensure the banks won't fail again.

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Factory orders rise more than expected in May

WASHINGTON (AP) — Orders to U.S. factories jumped in May by the largest amount in nearly a year, another sign that the nosedive in manufacturing is nearing an end.

The Commerce Department said Thursday that total orders rose 1.2 percent in May, better than the 0.8 percent increase that economists had expected. The April performance was revised slightly lower to a gain of 0.5 percent, from 0.7 percent.

The May increase was the best showing since a 2.1 percent rise last June. The back-to-back increases in April and May were the first consecutive gains in nearly a year.

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Oil prices tumble as Europe and the US shed jobs

NEW YORK (AP) — Oil prices tumbled to their lowest level in a month Thursday following the release of woeful job numbers in Europe and the U.S.

Benchmark crude for August delivery fell $2.58, nearly 4 percent, to settle at $66.73 a barrel on the New York Mercantile Exchange.

Crude hit an eight-month high in midday trading Tuesday, but prices have fallen at the close for five straight days now.

Nymex is closed Friday for the July Fourth holiday.

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GM urges quick approval of sale plan

NEW YORK (AP) — An attorney for a trio of bondholders opposed to General Motors' sale plan on Thursday urged a judge to call the government's bluff and require the automaker to restructure itself through a more traditional Chapter 11 process instead of through the quick sale of its assets.

Michael Richman said in his closing statement that it's doubtful that the government would actually make good on its threat to cut off funding to the automaker if the sale doesn't go through by its July 10 deadline. While GM may be powerless to fight the government's demands, the court can "push back" to protect the interests of all the company's stakeholders, he said.