Not good, not good , not good
The Dow Jones Industrial average is dropping, and dropping quickly today as Wall Street is interpreting new information about jobless claims (unemployment) as very bad for teh economic outlook.
Wall Street dove sharply lower Thursday, sending the Dow Jones industrials down more than 300 points as retailers and the Labor Department added to the mountain of dismal economic news that has all but dashed investors' hopes for a late-year recovery.
The nation's major retailers said shoppers curtailed spending last month due to higher gas and food prices. Wal-Mart Stores Inc., the world's largest retailer, beat expectations, but many teen retailers and luxury chains did poorly.
Meanwhile, the Labor Department said new applications for unemployment insurance rose by 15,000 from the previous week. That broadly missed expectations for a fourth-straight week of declines, heightening worries that the average American -- already feeling the effects of the weak housing market -- will have even less means to spend.
Furthermore, if the job market keeps deteriorating, it is tough for Wall Street to see a rebound in sight for the economy's biggest culprit: the tumbling housing market.
"You have to have a paycheck to pay that mortgage," said Craig Peckham, market strategist at Jefferies & Co
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