U.S. Stocks Drop on Concern Job Losses Show Worsening Recession

[truthisfreedom]

Source: Bloomberg

By Lynn Thomasson

Jan. 9 (Bloomberg) -- U.S. stocks declined, erasing an early rally in the futures market, on concern an increase in the unemployment rate signals the global recession is worsening.

Alcoa Inc., International Business Machines Corp. and Home Depot Inc. dropped after employers cut 524,000 positions in December, capping the worst year for firings since 1945. CVS Caremark Corp., the second-biggest drugstore chain, slipped 8.7 percent after forecasting 2009 profit that trails analysts’ estimates.

The Standard & Poor’s 500 Index rallied 21 percent since plunging to an 11-year low on Nov. 20 as investors speculated the worst of the recession is over. Stocks erased gains and slid today on concern escalating unemployment will squelch consumer demand after retailers reported worse-than-expected holiday sales.

Read more: http://bloomberg.com/apps/news?pid=20601087&sid=apDKS03hrAGc&refer=home

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No comment. What can be said? I'm fighting to keep all of my employees at my small manufacturing company, but many of my independent contractors will be out of work.

[SpiralHawk]

1. The putrid fruit of republiconomics

[sandnsea]

2. Good of you to try

What do you manufacture? Maybe somebody around here knows of a buyer.

[antimatter98]

3. Gee, you mean if people can't buy things on credit, Wall St. gets worried?

Prices are too high, cost of credit is too high, employment
is tanking, and so people are not buying.

People are not paying the 3:1 or more markups
(mainly foreign goods from Asia and Latin America)
and then financing the entire thing on credit
cards at 30% APR.

It is not just unemployment, but that overall price levels
are too high and consumer interest rates are too high.