Stocks mostly lower despite upbeat economic reports
NEW YORK -- Stocks slid Thursday despite reports on unemployment and gross domestic product that showed the nation's economy appears to be stabilizing.
The Labor Department said first-time unemployment claims fell 10,000 to a seasonally adjusted 570,000. Though jobless claims declined, it was just shy of economists expectations for 565,000.
A Commerce Department report showed the nation's economy shrank at a 1% annualized rate in the second quarter. The updated figure was unchanged from a preliminary reading on the nation's GDP, which measures the value of all goods and services produced within the U.S.
Economists had been predicting the figure would be revised lower to a 1.5% decline.
Overseas, Asian stocks fell after China said it would cut excessive investment in some industries, while European stocks were mixed.
On Wednesday, the Dow rose just 4 points, while the S&P and Nasdaq eked out gains of less than 1 point despite further signs the economy might be on the mend — a sign the market rally might be losing steam. The Commerce Department reported that new-home sales rose 9.6% in July for the fourth straight monthly increase. The department also said factory orders for goods expected to last at least three years rose 4.9% in July, the biggest jump in two years and easily eclipsing economists' expectations.
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