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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (228)	9/12/2002 11:03:51 AM
From: MulhollandDrive	Respond to of 57110

quote.bloomberg.com U.S. Stocks Fall as Jobless Claims Rise; Consumer Shares Drop By Scarlet Fu New York, Sept. 12 (Bloomberg) -- U.S. stocks fell for a second day after a government report showed the number of people filing for unemployment benefits rose to a five-month high. ``Anytime something happens that might convince the consumer to pull back, that's a problem,'' said George Jacobsen, chief investment officer at Trevor Stewart Burton & Jacobsen Inc., which handles $750 million. Consumer shares such as Procter & Gamble Co. slid after the fourth increase in jobless claims in five weeks. Federal Reserve Chairman Alan Greenspan reinforced concerns over the sluggish economy by saying falling stocks, a slump in investment spending and last year's terrorist attacks presented ``very significant challenges'' to growth in the past year. Chip-related stocks such as Intel Corp. dropped after Europe's Royal Philips Electronics NV reduced its forecast for semiconductor sales. The Standard & Poor's 500 Index declined 14.64, or 1.6 percent, to 895.20 as of 10:15 a.m. New York time. Technology and consumer shares made up more than a third of the index's decline. The Dow Jones Industrial Average shed 139.81, or 1.6 percent, to 8441.36, with 28 of its 30 members falling. The Nasdaq Composite Index slid 26.25, or 2 percent, to 1288.20. Stocks yesterday snapped a three-day advance as the Fed released its regional economic report card, saying the U.S. economy slowed in the past six weeks. In a prepared testimony to Congress, Greenspan said ``the economy appears to have withstood this set of blows well, although the depressing effects still linger and continue to influence, in particular, the federal budget outlook.'' The Labor Department said the number of U.S. workers filing new jobless claims rose to 426,000, a five-month high. That marks the third week in a row that claims held at or above 400,000, a level that economists say suggests workers can't find jobs. Bush Speech Some investors said they may resist making new bets until after President George W. Bush presents his case for a military strike against Iraq in a speech to the United Nations at 10:30 a.m. New York time. Bush will lay out how Iraqi leader Saddam Hussein has defied 16 UN resolutions over the past 11 years while pursuing a weapons buildup that imperils his neighbors and other nations, according to a 22-page background document the White House released. ``If they go to war, it will hit consumption and we will get a significant slowdown in the economy,'' said Mark Beale, who helps oversee about $150 million in U.S. shares at New Star Asset Management in London. ``The stock market will fall if there are signs of slowing consumption.'' Procter & Gamble, the biggest U.S. household goods maker, shed 84 cents to $91.04. General Motors Corp., which is offering consumers 0 percent discounts and cash rebates to boost its car sales, dropped 72 cents to $46.37. Greenspan, scheduled to address the House Budget Committee at 10 a.m., may say the recovery will progress at an uneven pace. ``Greenspan's vision of the economy may indicate that some industries are still lagging,'' said Enrique Cabanas, who helps manage 3 billion euros ($2.9 billion) at Urquijo Gestion SA in Madrid.