Jobless numbers punch stocks; Dow loses 223
NEW YORK -- The stock market found little to celebrate heading into the long holiday weekend.
Major stock indexes fell more than 2.6% Thursday, pushing the Dow Jones industrials to their lowest level in six weeks, after the government said the unemployment rate hit a 26-year high and employers cut far more jobs than expected.
The data broke a trend of four straight months of improvement in job losses. The report — one of the most closely watched gauges of the economy's health — delivered the latest blow to the market's already waning confidence.
Investor optimism has been shaken in recent weeks amid a barrage of mixed economic reports, making for an erratic market.
This past week was no exception. Stocks rose Monday, then erased nearly all their gains the following day after a report showing an unexpected drop in consumer confidence.
On Wednesday the market bounced back after getting some reassuring data on manufacturing and housing, only to tumble again on Thursday on the disappointing jobs report.
"There's not a lot of conviction on either side," said Jill Evans, co-portfolio manager of the Alpine Dynamic Dividend Fund.
The Dow Jones industrials lost 223.32, or 2.6%, to 8,280.74, the lowest close since May 22. It was the average's worst day since April 20.
The Standard & Poor's 500 index fell 26.91, or 2.9%, to 896.42 and the Nasdaq composite index fell 49.20, or 2.7%, to 1,796.52.
The Russell 2000 index of smaller companies fell 20.25, or 3.9%, to 497.21.
For the week, the Dow finished down 1.9%; the S&P 500 lost 2.5%; and the Nasdaq fell 2.3%.
The Russell fell 16.01, or 3.1%, for the week.
The Dow Jones U.S. Total Stock Market Index — which measures nearly all U.S.-based companies — ended at 9,201.07, down 216.44, or 2.3%, for the week. A year ago, the index was at 12,842.33.
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