Dec 12, 2008, 11.19 AM | Source: CNBC-TV18
Stocks closing in the red on Thursday in the latest round of tough economic news, the Dow dropped 193 points, the Nasdaq declined 58 points and the S&P 500 lost 26 points.
The job bleed continues; initial jobless claims surged by almost by 60,000 last week to 573,000 hitting a 26-year high some 4.4 million American remained on the list of people who continued to seek benefits, both readings were significantly above economist forecast.
Home foreclosures declined by 7% last month but Realty Track, which compiles the data says the situation will worsen next month because Novemberís decline resulted from legislation that slowed the foreclosure process. Nevada has been the hardest hit state with banks trying to repossess one in every 76 homes.
Meanwhile the global slowdown hurts and sales of US products overseas and that has led to surprise of 1.1% spike in US trade deficit in October. Senates of the Republican are blocking the bailout of the auto sector despite the support of President Bush. Minority leader Mitch McConnell said the current proposal is nearly tough enough on automakers and the government should intervene in some industries but not others.
Wall Street action:
Financials, automakers drag US stocks down
Dow loses 2.2%, S&P 500 down 2.8%, Nasdaq down over 3.5%
Crude surges on weak dollar & OPEC production cut expectations
Crude prices above $48/bbl
Jobless claims continue to mount, topping estimates, hits 26-yr high
4.4 m Americans seek benefits; higher than economists predicted
Home foreclosures decline by 7%, Realty Track says situation will worsen
Global slowdown hurts sales of US products overseas
Oct trade deficit widens more than expected, import prices drop more
Many Republicans seem determined to block auto bailout in the Senate
Mitch McConnell says proposal not tough enough on automakers.