Worries over persistent job losses pound stocks

Financial Crisis Posted on

Persistent job losses set off new worries about the economy and weighed on stocks Thursday.


The Dow Jones industrial average lost 150 points after continuing claims for unemployment benefits set their 16th straight weekly record. The number of newly laid-off workers seeking benefits fell last week but only after jumping a week earlier because of auto layoffs.

The report is causing the market to reconsider its optimism over early signs of recovery in the economy, which helped propel a two-month rally that lifted stocks off of 12-year lows in early March. On Wednesday, stocks gave up early gains and ended lower after the Federal Reserve said the economy was likely to shrink by more than expected this year.

Wall Street's concerns extended beyond jobs to fresh worries about the ability of governments to help grease economic activity with public spending. Credit ratings agency Standard & Poor's said Britain may have its rating cut because of rising debt levels, which would raise borrowing costs for the British government.

Even with governments pumping huge amounts of money into economies around the world there are still questions about how soon a rebound might take hold. In the U.S., home prices are still sliding and unemployment remains at a 25-year high.

Stephen Carl, a principal and head of equity trading at The Williams Capital Group, said the market is sliding in part because it isn't getting a steady diet of good news to draw in more buyers.

Legal News Media

Legal News is the top headline legal news provider for lawyers and legalprofessionals. Read law articles and breaking news from law firm's across the United States to get the latest updates. We reserve the right, at our discretion, to change, modify, add, or remove portions of the site at any time. Your This site is solely for your personal use. You are, of course, welcome to print or otherwise copy material from this site for your personal use. However, you may not distribute, exchange, modify, sell or transmit anything you copy from this Site, including but not limited to any text, images, audio and video, for any business, commercial or public purpose. Any unauthorized use of the text, images, audio and video may violate copyright laws, trademark laws, the laws of privacy and publicity and civil and criminal statutes.

 

American Bar Association – Start and Run a Law Firm

NewYorkStateBar.com – Starting a Law Firm

Lawyer Website Designs