REFILE-US STOCKS-Dow sinks 1,000 points on alarm over virus spreading in United States

(Fixes dropped words in first paragraph)
* Shares of airlines, cruise liners lead declines
* Bank stocks track a fall in U.S. Treasury yields
* Indexes down: Dow 3.76%, S&P 3.65%, Nasdaq 3.16%

By Medha Singh and Sanjana Shivdas
March 5 (Reuters) - Wall Street's losses deepened and the
Dow Jones Industrials shed 1,000 points in afternoon trading on
Thursday as the coronavirus death toll in the United States rose
to 11 and travel related stocks took a severe beating.
Technology giants Alphabet Inc GOOGL.O , Amazon.com Inc
AMZN.O , Facebook Inc FB.O and Microsoft Corp MSFT.O
recommended their employees in Seattle work from home.
The state of California declared an emergency, a day after
U.S. lawmakers approved an $8.3 billion bill to combat the
outbreak. Investors dumped stocks and rushed to the safe havens,
boosting gold prices by 1.8% and pushing the yield on the
benchmark 10-year U.S. Treasury to a record low. US/
"With bonds surging and yields at historic lows, concerns
are we will get some kind of economic slowdown and it may be
worse than initially factored in," said Andre Bakhos, managing
director at New Vines Capital LLC in Bernardsville, New Jersey.
As virus cripples travel demand, the International Air
Transport Association flagged a potential $113 billion hit to
global airline travel, sending the S&P 1500 Airlines Index
.SPCOMAIR down 8.1%. Carrier Southwest LUV.N issued a revenue warning, while
United Airlines UAL.O and JetBlue Airways JBLU.O cut flights
and implemented cost controls. Cruise operators Carnival Corp CCL.N , Royal Caribbean
Cruises RCL.N and Norwegian Cruise Line Holdings NCLH.N sunk
between 14% and 17% as health officials screened people on a
ship linked to a person's death in California.
The CBOE Volatility index .VIX , Wall Street's fear gauge,
jumped 8.2 points to 40.14.
At 1:20 p.m. ET, the Dow Jones Industrial Average .DJI was
down 1,018.93 points, or 3.76%, at 26,071.93, the S&P 500 .SPX
was down 114.27 points, or 3.65%, at 3,015.85. The Nasdaq
Composite .IXIC was down 284.86 points, or 3.16%, at 8,733.23.
All the major S&P sectors were in the red with a 5.3% fall
in the interest-rate sensitive financials sector .SPSY
weighing the most.
The benchmark index, which fell almost 12% last week, its
worst since the 2008 financial crisis, had recovered some poise
on Wednesday on Joe Biden's surge in the Democratic primaries.
The index, however, is still about 11% below its record
close on Feb. 19.
The Labor Department's data showed weekly jobless claims
fell last week, indicating resilience in the domestic economy.
However, analysts remained skeptical about the future.
"If we are headed towards a recession or if you are seeing
pressure on travel and tourism, I would expect the jobless
claims to worsen over the next few weeks," said Mike Bailey,
director of research at FBB Capital Partners in Bethesda,
Maryland.
All eyes will now be on the crucial non-farm payrolls report
on Friday.
Declining issues outnumbered advancers for a 6.23-to-1 ratio
on the NYSE and for a 4.76-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and 71 new
lows, while the Nasdaq recorded 24 new highs and 253 new lows.