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Tickers in this Article: HPQ, BAC, AXP, JPM, TRV, XLF, IAI, XLY, SBUX, AMZN, NKE
To this point, May has been the worst month of 2012 for U.S. stocks, but the first day of June now has the dubious honor of being the worst day of the year. Thanks to a May jobs report that can only characterized as an epic disappointment, it was the usual suspects at the sector level that helped send all three major U.S. indexes to intraday losses of more than 2%. With the Dow Jones Industrial Averaging plunging 275 points, erasing its 2012 gains in the process, it was not surprising to see that all 30 Dow constituents were down on the day. Nor was it surprising to see which stocks were the worst offenders. Strip Hewlett-Packard (NYSE: HPQ) and its 6.3% loss out of the equation because that stock has been dead money for a while now. Who were the next worst Dow offenders following the jobs report, you ask?

Ding ding ding! You got it: Financials. Bank of America (NYSE: BAC), the Dow's top performer in the first quarter, plunged 4.5%. Warren Buffett favorite American Express (NYSE: AXP) gave up 4.3% and embattled J.P. Morgan Chase (NYSE: JPM) was no peach either with a loss of 3.7%. Just for good measure, we'll throw in Travelers (NYSE: TRV), the Dow's lone insurance company. That stock slid over 3% as well.

And it wasn't just the Dow's financial stocks that got pummeled. It was nearly ALL bank stocks. The Financial Select Sector SPDR (NYSE: XLF) gave up 3.7% while the iShares Dow Jones US Broker-Dealers Index Fund (NYSE: IAI) slip 2.9%.

It wasn't just financials that got burned this week. In the just completed week, investors had to endure a bad consumer confidence data, a downward revision in the first-quarter GDP number and bad May jobs report. Simply put, there's no way the consumer discretionary group can escape such carnage. That much was evident by the 4.2% decline for the Consumer Discretionary Select Sector SPDR (NYSE: XLY) on Friday.

Looking at few of XLY higher beta holdings, we see some ominous signs that traders are worried about the integrity of the U.S. economic recovery. On Friday, Starbuck's (NASDAQ: SBUX) plunged 5%. Amazon (NASDAQ: AMZN) shed 2% while Nike (NYSE: NKE) dropped 3%. Ford (NYSE: F) slid 4.2% and that was after reporting impressive May sales figures.

There's no need to go on because most investors understand the point. Not only financials and discretionary stocks two of the most important sectors when measuring the broader market's health, they're also high beta sectors that will not react well to poor economic trends. Sidelines or short might be the only ways to play these groups in the near-term.

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