Markets uncertain after more economic news
Stocks are mixed this morning as more reports show an increase in unemployment claims and foreclosures and more companies cut earnings expectations, the Associated Press reported.
After falling more than 400 points yesterday, the Dow Jones industrial average was up nearly 45 points this morning. But by 11 a.m., it was down 50.42 points to 8,232.24. Over the past three days, stocks have lost about $1 trillion, according to the Dow Jones Wilshire 5000 index, which reflects that value of nearly all U.S. stocks.
Stocks were expected to continue to fall this morning after the Labor Department reported that jobless claims rose by 32,000 last week to a seasonally adjusted 516,000, the highest total since just after the Sept. 11 terrorist attacks. The four-week average rose to 491,000, the highest level in more than 17 years. Claims above 400,000 are considered a sign of recession.
The Commerce Department also reported that the trade deficit fell by 4.4 percent in September to $56.5 billion as imported crude oil prices dropped by a record $12.41 per barrel and the volume of shipments declined to the lowest level in more than five years. However, a rise in imports from China caused the trade gap between the two nations to expand to $27.8 billion.
Meanwhile, foreclosures were up 25 percent in October from the year-ago period, with more than 279,000 U.S. homes receiving at least one foreclosure-related notice during the month, according to RealtyTrac Inc. More than 84,000 properties were repossessed.
Wal-Mart Stores Inc. beat analysts’ expectations when it announced a 9.8 percent rise in third-quarter profits, but still lowered its full-year forecast because a stronger dollar is eroding its overseas revenues. Intel Corp. lowered its sales forecast by more than $1 billion and Best Buy Co. lowered its forecast for the rest of the year, citing a “seismic” shift in consumer spending.
World markets ended down today, with Japan’s Nikkei index falling 5.25 percent and Hong Kong’s Seng index declining 5.15 percent. Earlier this morning, London’s FTSE 100 was down 1.46 percent, while Germany’s DAX was up 0.41 percent.