The Bush stock market is having another bad day.
Dow Dips 81 on Weak Economic Reports
By HOPE YEN 03/06/2003 10:03:06 EST
An unexpected rise in jobless claims pressured Wall Street Thursday, sending stocks lower for a third day in four as investors already nervous about war found little reason to buy.
In early trading, the Dow Jones industrial average was down 80.95, or 1 percent, at 7,694.65. The loss more than erased the blue chips' 70 point-gain on Wednesday. The broader market was also lower. The Nasdaq composite index fell 10.19, or 0.8 percent, to 1,304.21. The Standard & Poor's 500 index dropped 5.95, or 0.7 percent, to 823.90.
The Labor Department reported Thursday that new claims for unemployment benefits rose last week by a seasonally adjusted 12,000 to 430,000, their highest level of the year. It marked the third week in a row that layoffs increased; analysts were expecting claims to decrease.
In a separate report, however, the department said productivity rose at an annual rate of 0.8 percent in the fourth quarter, according to revised figures. That marked a turnaround from the 0.2 percent rate of decline reported a month ago.
The mixed economic news weighed heavily on a hesitant market worried about growing tensions with Iraq and North Korea.
On Thursday, the United Nations remained divided over a proposed U.S.-backed resolution authorizing war against Iraq. Britain explored a compromise to amend the proposal and give Saddam Hussein's government one final deadline to disarm.
Concerns about tensions with Iraq and North Korea have led to choppy trading in recent weeks as investors make short-term bets on when or whether there will be a war. Analysts say a protracted conflict could weaken the already-fragile economic recovery.
Tyson Foods dropped 84 cents to $7.69 after it lowered its second-quarter earnings outlook.
Raytheon lost $1.67 to $25.24 after the defense contractor reaffirmed its 2003 financial outlook but said profits next year may fall as much as 11 percent, citing higher pension costs.
Gainers included Circuit City, which rose 16 cents to $4.49 after the retailer raised its fiscal fourth-quarter profit outlook.
The Russell 2000 index, which tracks smaller company stocks, fell 1.72, or 0.5 percent, to 354.82.
Overseas, Japan's Nikkei stock average finished 1.2 percent lower Thursday. In afternoon trading in Europe, France's CAC-40 fell 1.3 percent, Britain's FTSE 100 dropped 0.9 percent and Germany's DAX index lost 1.9 percent.
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