NOW, SPAIN: An auction of 10-year Spanish government bonds left the country paying interest rates of nearly 7 percent, a level economists consider unsustainable. Greece and Ireland received rescue loans from the European Union after their rates jumped above the same mark.
THE INDEXES: The surge in Spanish bond yields brought new worries about Europe's debt crisis, pushing stocks lower. The Dow dropped 135 points, or 1 percent. The S&P 500 dropped 21, or 1.7 percent.
JOBS NEWS: The number of people seeking unemployment benefits last week fell to the lowest level in 7 months, a sign layoffs are easing.