The stock market sank this morning on the double hit of news that the U.S. labor market continues to weaken and the sales of new homes dropped to the lowest level on record.
The U.S. Department of Labor said continuing jobless claims rose by 159,000 in the week ended Jan. 17 to a seasonally adjusted 4.78 million, the most since the government's records began in 1967.
Meanwhile, the number of new claims for state unemployment benefits also increased, up 3,000 to a seasonally adjusted 588,000 in the week ended Jan. 24. Nationally, new home sales fell 14.7 percent in December to the lowest level on record, the U.S. Commerce Department estimated today. New-home sales fell to a seasonally adjusted annual rate of 331,000. There were 482,000 new homes sold in 2008, down a record 37.9 percent from 776,000 sold in 2007.
Eastman Kodak Co. today became the latest large American company to announce quarterly losses and said it will eliminate up to 4,500 jobs.
The reports sent the Dow Jones Industrial Average to a triple-digit decline this morning, and local stocks in the BizTimes Stock Index followed suit. The largest local decliners this morning were Snap-on Inc. (down $2.21 to $31.60), Manpower Inc. (down $1.54 to $30.76) and Joy Global Inc. (down $1.22 to $21.87). Only a handful of local stocks managed to post meager advances this morning, led by Wisconsin Energy Corp. (up 48 cents to $46.03) and Kohl's Corp. (up 38 cents to $39.13).
Jobless claims rise, new home sales fall
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