Wall Street extends loss on unexpected jobless data

08:32, August 13, 2010      

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Wall Street extended its loss on Thursday after a government report showed that initial jobless claims unexpectedly rose to their highest level in five months.

The Labor Department said that the number of people applying for unemployment benefits rose by 2,000 to 484,000 last week. The slight increase came as economists were expecting a drop, showing layoffs increased as the economic recovery slowed.

Unemployment rate rose in July to 9.6 percent in the United States. The gloomy data is weighing on consumer spending, causing many corporations to issue weak or cautious outlooks for the year.

U.S. home foreclosures rose nearly 4 percent in July from a month earlier, indicating that home prices may face more downward pressure from increasing foreclosed properties, a U.S. leading housing market data tracking company reported on Thursday.

The number of foreclosure activities, which incorporates all three phases of foreclosure including default notices, scheduled auctions and bank repossessions, totaled 325,229 in July, up nearly 4 percent from the previous month but down nearly 10 percent from the same period last year, RealtyTrac said in the report.

Meanwhile, Cisco reported revenues that fell short of market expectations. Cisco shares tumbled about 10 percent to 21.36 U.S. dollars, dragging other technology stocks broadly lower.

The Dow Jones industrial average dropped 58.88 points, or 0.57 percent, to 10,319.95. The Standard & Poor's 500 index fell 5.86 points, or 0.54 percent, to 1,083.61 and the Nasdaq was down 18.36 points, or 0.83 percent, to 2,190.27.

The dollar continued to gain Thursday as more reports from the U.S. and Europe pointed to slowing economic growth. The euro slid to 1.2824 dollars from 1.2882 dollars on Wednesday.



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