Jobless claims jump is bad omen for economy

AP, via Yahoo!:



AP
Jobless claims jump is bad omen for economy
Thursday September 4, 4:27 pm ET
By Christopher S. Rugaber, AP Business Writer
Jobless claims rise unexpectedly, reversing 3 weeks of declines; productivity jumps


WASHINGTON (AP) -- Jobless claims rose unexpectedly last week, the government said Thursday, while companies responded to the slowing economy by producing more with fewer workers.

It was not great news for American workers, who have seen jobs decline and wages erode, but it may signal less inflation worries for the Federal Reserve.

The Labor Department reported that new applications for unemployment insurance rose to a seasonally adjusted 444,000, up 15,000 from the previous week. Economists had expected claims to drop to 420,000.

That news, plus disappointing sales reports from retailers, sent financial markets down as investors lost hope for an end of the year recovery. The Dow Jones Industrial Average dropped 344.65, or 2.99 percent, to 11,188.23, its worst tumble since June 26, when it fell more than 3.03 percent. The Standard & Poor's 500 index fell 2.99 percent, and the Nasdaq composite index slid 3.20 percent.

Stocks fell even though the price of oil dropped to its lowest in five months on worries that the slowing global economy would curtail energy demand from businesses and consumers. .....(more)

The complete piece is at: http://biz.yahoo.com/ap/080904/economy.html