Stock Sink As Unemployment Claims Rise
Wall Street has seen sinking stock prices again today, although selling has been relatively muted so far. Heading into the final minutes of the trading day, the markets were down about 50 points.
The market outlook was not helped by word from the Labor Department that new unemployment claims rose last week to the highest level in almost six months. Analysts had expected a decline in new jobless claims.
It's a sign that hiring remains weak and employers may be going back to cutting their staffs. Analysts say the increase suggests companies won't be adding enough workers in August to lower 9.5 percent unemployment rate.
The Labor Department says first-time claims for jobless benefits edged up by 2,000 to a seasonally adjusted 484,000. That's the highest total since February. Analysts had expected claims to fall.
Initial claims have now risen in three of the last four weeks and are close to their high point for the year of 490,000, reached in late January.
Also Thursday, Cisco Systems' revenue and outlook fell short, sending the stock down sharply.
The Dow fell 265 points Wednesday amid growing concern about the U.S. economy.
© MMX WWJ Radio, All Rights Reserved. The Associated Press contributed to his report.
