Unemployment rise sends stocks down

Dec. 7, 2001
According to Reuters, stocks slid today after the nation's jobless rate leapt to a six-year high, dashing hopes that economic recovery is just around the corner. The U.S. government had reported that unemployment climbed to a six-year high of 5.7 percent in November. That was up from 5.4 percent in October. What’s more, a staggering 331,000 non-farm jobs were eliminated, a drop much greater than the
According to Reuters, stocks slid today after the nation's jobless rate leapt to a six-year high, dashing hopes that economic recovery is just around the corner.

The U.S. government had reported that unemployment climbed to a six-year high of 5.7 percent in November. That was up from 5.4 percent in October. What’s more, a staggering 331,000 non-farm jobs were eliminated, a drop much greater than the 189,000 cuts expected by economists.

Upon the news, the Dow Jones industrial average dropped 45.32 points, or 0.45 percent, to 10,053.82, while the Standard & Poor's index fell 6.31 points, or 0.54 percent, to 1,160.79. The technology-based Nasdaq went down 18.06 points, or 0.88 percent, to 2,036.21.

The unemployment figures also increased expectations that the Federal Reserve would cut short-term interest rates at its meeting next week in hopes once again of boosting the economy.

According to Reuters, Wall Street effectively “shrugged off” news that a key gauge of consumer confidence had bounced up in early December. The University of Michigan's preliminary consumer sentiment index for December had risen for a third straight month, reaching 85.8 from 83.9 in November. But that bit of positive news wasn’t nearly enough to offset the grim unemployment stats.

U.S. progress in the war against Afghanistan’s Taliban rulers, Reuters noted, has helped buck up Wall Street in recent weeks. That trend continued today as reports came in that hard-liners were surrendering Kandahar, the birthplace and last stronghold of the Taliban. Nevertheless, supreme Taliban boss Mullah Mohammad Omar and terrorist overlord Osama bin Laden remain at large.

Sponsored Recommendations

Heavy-Duty Maintenance Checklist

A maintenance checklist can help ensure you hit everything necessary during an inspection. Check out our free downloadable checklist to help streamline your repairs.

Five Ways a Little Data Can Save Your Company Millions

While most trucking and logistics companies rely on cellular to keep their work fleet connected, satellite has the ability to connect anywhere and through small data transmission...

Fleet Case Study: 15% YOY Growth for ITDS

Learn how this small trucking company scaled significantly and maintained outstanding customer service without adding additional people. Sylectus TMS can automate operations and...

Unlocking Fleet Safety & Efficiency: The Managed Service Advantage

Want to boost your fleet's safety and efficiency? Tune in now to discover the power of Managed Services in optimizing your safety program, streamlining operations, and making ...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!