NEW YORK >> Discouraging news on jobless claims battered Wall Street yesterday, sending stocks lower for the third day in four. The Dow Jones industrials lost more than 100 points to a fresh five-month low. Dow hits 5-month low
as jobless claims jumpBy Hope Yen
Associated Press"The economic news of the past several weeks paints the same picture -- the economy has moved off its bottom but it's still sluggish," said Russ Koesterich, U.S. equity strategist at State Street Corp. in Boston.
"The market is looking for corporate revenue to increase. ... But there's no evidence of that occurring yet," he said.
Uneasiness about the situation with Iraq was again an underlying cause of the market's malaise.
The Dow fell 101.61, or 1.3 percent, to close at 7,673.99. The loss more than erased blue chips' 70-point gain from Wednesday. It was the lowest level for the Dow since Oct. 10, when it closed at 7,533.95.
The broader market also finished lower. The Nasdaq composite index fell 11.51, or 0.9 percent, to 1,302.89. The Standard & Poor's 500 index dropped 7.75, or 0.9 percent, to 822.10.
Declining issues outnumbered advancers about 9 to 5 on the New York Stock Exchange. Volume was light at 1.29 billion shares, compared with 1.32 billion traded Wednesday.
The Russell 2000 index, which tracks smaller company stocks, fell 2.70, or 0.8 percent, to 353.84. The NYSE composite index dropped 47.73 to 4,626.02. The American Stock Exchange composite index slipped 1.62 to 827.02.
The Labor Department reported yesterday 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.
And a third report from the Commerce Department showed orders to U.S. factories rose 2.1 percent in January, the best showing in six months, and up from a 0.3 percent increase in December.
The mixed economic news weighed on a hesitant market worried about growing tensions with Iraq and North Korea.
Concerns about the economy and overseas tensions 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 military conflict could weaken the already-fragile economic recovery.
The Dow is now less than 400 points above its five-year closing low of 7,286.27, reached on Oct. 9.
Retailers also dropped after several reported disappointing sales in February, citing war worries and the severe winter weather in the Northeast. Sears slid 70 cents to $19.30, while Wal-Mart fell 48 cents to $47.40.
"There are a number of signs the U.S. consumer is becoming more selective, such as sluggish sales," said Subodh Kumar, chief investment strategist for CIBC World Markets.
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