| Stocks End Mixed On Incomplete Jobless Claims Data |
| Oct-11-2012 |
| Keywords: stocks, wall street, jobless claims, skewed data |
Stocks on Wall Street end flat on suspect data out of the Department of Labor.
The Dow Jones Industrial Average fell 19 points. The Nasdaq Composite lost 2 points. The S&P 500 ended its four-day slide with a fractional gain, up .28 points on the day.
The market got an initial boost on a huge drop in weekly jobless claims. The Labor Department's report for initial jobless claims ending Oct. 6 showed a drop of 30,000, totaling a more than 4 ½ year low of 339,000. But enthusiasm over the news subsided as investors learned that a large state had underreported its weekly jobless claims.
Incomplete data, believed by many to be about of California, accounted for a substantial portion if not all of the unexpected drop.
That news follows skepticism over the unexpected drop in the unemployment rate in September. The Department of Labor reporting that some 837,000 American found work last month. But a huge portion of those turned to part-time jobs or self-employment to pay their bills.
The market also reacted to news on the trade deficit, which last month grew slightly more than expected. The Commerce Department reported the U.S. trade gap widened to $44.2 billion in August from $42.5 in July. Imports into the United states fell 1%, marking the third straight monthly decline.
A separate report showed U.S. import prices rose 1.1% in September from August, topping estimates of 0.7%. Export prices rose 0.8%, topping estimates of 0.4%.
The market also growing anxious ahead of earnings from financial heavyweights JP Morgan Chase and Wells Fargo, both due out with their quarterly results Friday morning.
Sprint Nextel was a contributor to halting the S&P 500's losing streak. Sprint's stock surged 14 percent on news that Japan's Softbank is looking to buy a 70% stake in the U.S. cellular company for $12.8 billion. |
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Posted by Lou Dobbs Staff at 8:00 PM Email to a friend |
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