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The Fed signaled that because the economy is improving, it is unlikely to buy bonds to stimulate the economy further. The Fed launched bond-buying programs in 2009 and 2010 to lower interest rates and help stock prices. Payroll processor ADP said Wednesday that the economy added 209,000 private-sector jobs in March. Economists think the government's monthly unemployment report on Friday will show a gain of 210,000 for March. Job growth averaged 245,000 from December through February. Traders sold European bonds and bought safer investments such as German bunds and U.S. Treasurys. The yield on the 10-year Treasury note fell to 2.23 percent from 2.29 percent late Tuesday. Bank stocks, which typically decline when the European debt crisis flares, dropped sharply. Citigroup dropped 3.6 percent, Morgan Stanley fell 3.5 percent, JPMorgan Chase 2.2 percent and Bank of America 3 percent. "Despite the relatively strong run we've had in the U.S., there's a number of headwinds out there, the main one being Europe," said Bernie Kavanagh, vice president portfolio management at the investment firm Stifel Financial. The stocks of materials and mining companies fell. Newmont Mining was down 3.6 percent, while Freeport-McMoran Copper fell 1.4 percent. Aluminum maker Alcoa Inc. fell 2.5 percent, one of the biggest declines in the Dow. In other corporate news: Sears fell 7.4 percent. The retailer is reportedly planning to sell the casual clothing line Lands' End, which it acquired in 2002. SanDisk, which makes memory cards and chips, plunged 11 percent, the most in the S&P, after the company cut its forecast for first-quarter revenue because of weaker demand and lower prices. Home marketer Hovnanian Enterprises Inc. dropped 8.5 percent on fears that a public stock offering of 25 million shares would dilute share value. The company is selling stock to reduce debt. GMX Resources, an independent oil and gas producer, shot up 24 percent after the company reported that a well drilled in McKenzie County, North Dakota was producing oil at a 50 percent higher rate than a nearby well.
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