News of a hike in the U.S. unemployment rate fanned fears that the economy was near recession, causing the Los Angeles Business Journal’s index of the 200 largest local public companies to drop for the week ended Sept. 5.

The local index was down 2.7 percent to $137.53 on Friday compared to a week ago, and losers outpaced gainers 111 to 71.

Several banking stocks maintained gains from earlier in the week, among them Cathay General Bancorp, rising 14 percent to $21.82; East West Bancorp Inc., gaining 12 percent to $13.86; and Preferred Bank, up 7 percent to $10.06. But FirstFed Financial Corp., among top gainers at mid-week, slid Thursday and had not fully recovered by the Friday close, ending the week down 13 percent to $14.

Jacobs Engineering Group Inc. dropped 14 percent to $64.57. Sterne, Agee & Leach analyst Chase Jacobson initiated coverage of the Pasadena engineering company with a “hold” recommendation.

Occidental Petroleum Corp. was down 9 percent to $73.27. Hurricane Gustav did less damage to Gulf Coast oil infrastructure than expected, forestalling a jump in crude oil prices that would have helped the Westwood oil and gas exploration company.