Dow slips on US jobless data
By Joyce M. Rosenberg |
August 13, 2010, Friday
|
Print Edition
Print Edition
UNITED States stocks yesterday fell for a third day as more disappointing earnings and economic news flowed in.
The Dow Jones industrial average fell more than 60 points after the US Labor Department reported that the number of people filing for unemployment benefits for the first time rose last week to 484,000. The gain was small at 2,000, but economists had expected the number to drop. The news pointed to continuing weakness in the labor market, yet another sign that the economic recovery is weakening.
The latest earnings reports added to the market's darkening view of the economy. Cisco Systems Inc's revenue from its latest quarter and its forecast for future revenue both fell short of analysts' expectations. The company's stock fell more than 9 percent and other tech stocks also fell.
Investors have been focused on revenue since companies began reporting second-quarter earnings almost a month ago. They're concerned by the connection between revenue and the economy - if revenue is down, it's a sign that consumers' reluctance to spend is starting to affect companies' sales and profits. Investors see the revenue shortfalls as another sign of a weakening recovery.
Stocks extended their losses from Wednesday, when the Dow fell 265 points as investors reacted to the Federal Reserve's lowering of its assessment of the recovery on Tuesday. Economic data from several countries, including the US, contributed to the heavy selling.
In early trading yesterday, the Dow fell 66.22, or 0.6 percent, to 10,312.61. The Dow slipped almost 320 points over the course of Tuesday and Wednesday. The Standard & Poor's 500 index fell 8.04, or 0.7 percent, to 1,081.43. The Nasdaq composite index fell 25.13, or 1.1 percent, to 2,183.5.
The Dow Jones industrial average fell more than 60 points after the US Labor Department reported that the number of people filing for unemployment benefits for the first time rose last week to 484,000. The gain was small at 2,000, but economists had expected the number to drop. The news pointed to continuing weakness in the labor market, yet another sign that the economic recovery is weakening.
The latest earnings reports added to the market's darkening view of the economy. Cisco Systems Inc's revenue from its latest quarter and its forecast for future revenue both fell short of analysts' expectations. The company's stock fell more than 9 percent and other tech stocks also fell.
Investors have been focused on revenue since companies began reporting second-quarter earnings almost a month ago. They're concerned by the connection between revenue and the economy - if revenue is down, it's a sign that consumers' reluctance to spend is starting to affect companies' sales and profits. Investors see the revenue shortfalls as another sign of a weakening recovery.
Stocks extended their losses from Wednesday, when the Dow fell 265 points as investors reacted to the Federal Reserve's lowering of its assessment of the recovery on Tuesday. Economic data from several countries, including the US, contributed to the heavy selling.
In early trading yesterday, the Dow fell 66.22, or 0.6 percent, to 10,312.61. The Dow slipped almost 320 points over the course of Tuesday and Wednesday. The Standard & Poor's 500 index fell 8.04, or 0.7 percent, to 1,081.43. The Nasdaq composite index fell 25.13, or 1.1 percent, to 2,183.5.
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