The stock market plunged sharply again this morning after the U.S. Department of Labor reported that American firms cut back their hiring in August for the first time in four years, adding to a week of bleak economic data.
U.S. non-farm payrolls fell by an estimated 4,000 jobs in August, the first such decline in since August 2003. The nation's unemployment rate held steady at 4.6 percent.
Adding to the sense of weakness in employment, payrolls in June and July were revised lower by a cumulative 71,000. Read the full report.
"The grip of the subprime mortgage crisis is apparent, as jobs growth has slowed to much less than half its second quarter 139,000 monthly pace. The risk of recession has increased to 50 percent," said Peter Morici, professor at the University of Maryland School of Business and former chief economist at the U.S. International Trade Commission. "Residential construction, mortgage lenders, real estate, and manufacturing displayed weakness, indicating growth is slowing significantly in the third quarter and raising prospects for an interest rate cut at the Sept. 18 meeting of the Federal Reserve Open Market Committee."
The household survey of employment indicates another 592,000 adults left the labor force in August, as the ranks of "discouraged" workers continue to swell.
"Low wages are discouraging many adults, who prefer to draw down assets or rely on incomes of spouses rather than accept substandard employment at poor wages and with few benefits. The unemployment statistics do not reflect the fact that many adults choose to sit on the sidelines, though it contributes importantly to lackluster GDP growth in 2007, terrible U.S. savings performance, Americans borrowing from foreigners at a pace of $50 billion per month, and a U.S. debt to foreigners now topping $6 trillion," Morici said.
The weak labor report sent the Dow Jones Industrials Average, the Nasdaq Stock Index and the S&P 500 Index reeling again this morning.
Local stocks also dipped sharply this morning. The largest local decliners of the morning were Harley-Davidson Inc. (down $4.36 to $49.73), Johnson Controls Inc. (down $2.73 to $109.70), Actuant Corp. (down $2.51 to $58.13) and Rockwell Automation Inc. (down $2.24 to $69.19). Only a handful of local stocks posted minimal gains, led by Twin Disc Inc. (up 9 cents to $50.98) and Middleton Doll Co. (up 5 cents to 75 cents).
Today's plunge came after the BizTimes Stock Index had recovered 1.63 points to close at 182.36 Thursday. The BizTimes Stock Index was created by Small Business Times and is monitored by North Shore Bank. The index, which measures the stock values of publicly held companies based in southeastern Wisconsin, is updated daily and can be viewed at www.biztimes.com.

Weakened demand by cash-strapped consumers who don't have as much access to credit prompted Harley-Davidson Inc. today to announce that it expects fewer motorcycle shipments and lower earnings.
The Milwaukee-based company said it reduced its estimate for third-quarter shipments to a range of 86,000 to 88,000 units, from 91,000 to 95,000 previously.
Harley said it now expects 2007 earnings of $3.69 a share to $3.77 a share, well below the average forecast of $4.12 a share in a survey of analysts by Thomson Financial.
Harley
"Initial reports about our 2008 model year motorcycles from our dealers and the media have been excellent, but this is a difficult time for the U.S. consumer," said Jim Ziemer, chief executive officer of the company. "Coming off a negative U.S. retail sales trend in the first six months of the year, we ran an effective promotion in July that increased retail sales and reduced inventories of 2007 model motorcycles. However, our U.S. dealers' retail sales have fallen sharply during August. Against the current economic background, we no longer expect worldwide dealer retail sales to increase during the second half of 2007. As a result, the company has decided to reduce its planned shipments of motorcycles to its dealers for the remainder of 2007. The company expects its actions will result in fewer wholesale motorcycle shipments than dealer retail sales during 2007," Looking ahead to 2008, Harley anticipates the U.S. retail motorcycle environment will continue to be "challenging."
Harley also withdrew its financial forecast for 2009.

Today is the last day for Milwaukee Brewers season ticket holders to reserve seats for possible postseason games at Miller Park, and the general public can begin seeking tickets this afternoon.
The first-place Brewers today announced three options open to all fans interested in purchasing 2007 postseason tickets for games to be played at Miller Park.
The Brewers are inviting fans interested in the opportunity to purchase tickets to a single game for the National League Divisional Series to register for a lottery. With inventory expected to be very limited, it is likely that only a limited number of fans will be selected to purchase tickets through that lottery, the Brewers said.
The other two options for the public to gain access to postseason tickets would involve purchasing season tickets for next season.
To sign up for the ticket lottery or view more information about the season ticket packages, visit www.brewers.com.
Meanwhile, Brewers assistant general manager Gordon Ash will make the official call today for a coin toss to determine the site of playoff game if the Brewers and the Cardinals finish in a tie for the Central Division championship. The Brewers invited fans to vote at their Web site for "heads" or "tails" on the call. As of this morning, 7,451 fans had voted, and "heads" was leading with 54 percent. The Brewers said Ash would vote in accordance with the poll.

Linda Timm, Ph.D., will be inaugurated as Mount Mary College's 10th president during a ceremony on Friday, Sept. 14, at 2:30 p.m. in the Bloechl Recreation Center on the school's campus at 2900 N. Menomonee River Parkway.
Dignitaries attending the inauguration will include Wisconsin Lt. Gov. Barbara Lawton, Milwaukee Mayor Tom Barrett, Wauwatosa Mayor Theresa Estness and 5th District Alderman James Bohl. Representatives from more than 30 colleges and universities locally and throughout the country, including the College of Notre Dame of Maryland in Baltimore, Illinois State University in Normal and Wesleyan College in Macon, Ga., will also attend the inauguration.
The installation will be conducted by Margaret Kelsey, chair of Mount Mary College's board of trustees.
Timm previously served as vice president for student affairs at Saint Mary's College in Notre Dame, Ind., for 11 years and has been an administrator in higher education for more than 33 years.
In addition to the campus ceremony, Milwaukee Archbishop Timothy Dolan will preside over an inauguration mass on Friday, Sept. 14, at 10 a.m., at Christ King Parish, 2604 N. Swan Blvd., Wauwatosa.
Throughout the week, Mount Mary will host a series of events to mark Timm's inauguration. For more information, visit www.mtmary.edu.

The University of Wisconsin-Whitewater's Management Computer Systems (MCS) program is the best information technology program (IT) in North America, according to the Association of Information Technology Professionals (AITP).
The AITP ranked UW-Whitewater¹s MCS program the No. 1 four-year computing degree program in the U.S. and Canada. This is the eighth time the Whitewater program has earned the ranking.
"UW-Whitewater continues to prove that many of our programs are the best in the nation," said Richard Telfer, the university's interim chancellor. "The fact that the management computer systems program has won this award for the eighth time is simply outstanding. This award recognizes our exceptional faculty and staff as well as the talented students who leave this campus with the real-world skills to go into the workforce and immediately meet their employer¹s needs. Congratulations to all those who have worked so hard to make this the top program in North America."
The MCS program received this award the first year it was offered, in 1984, and again in 1986, 1991, 1994, 1997, 2000 and 2003. UW-Whitewater is one of only two computer degree programs to be honored multiple times.
The AITP ranking is based largely on employers¹ perceptions of the strength and value of a program's graduates.
"It is particularly gratifying to be so highly regarded on a national level by industry for so long in a field where change occurs with such astonishing rapidity," said Robert Horton, MCS program coordinator. "The half life of knowledge in the IT field is somewhat less than 18 months, forcing the MCS program to revise its curriculum every two to three years.
The Whitewater program has been made possible by strong ties to and active support from industry partners such as Harley-Davidson Motor Co., Quad/Graphics Inc., Northwestern Mutual Life Insurance Co., Aurora Health Care and Kohl¹s Corp.
Christine Clements, dean of the UW-Whitewater College of Business and Economics, said, "The college is extremely proud of the consistent, exceptional ranking of this program.  No other IT program comes close to the consistency with which our program has come out on top.   This is even more meaningful because the ranking is made by the premier professional organization in the IT field. Technology is one of the strengths of our college and the MCS program is one of the major pillars of that strength."

To read a recent SBT cover story about the impact of the UW-Whitewater's College of Business and Economics, visit http://www.biztimes.com/news/2007/8/17/harvesting-homegrown-talent.

A coalition of House Democrats, a union leader and a representative of small trucking company owners Thursday urged the Senate to block the Bush administration's one-year project to allow some Mexican trucks to make unrestricted long-haul trips on U.S. roads. Rep. Steve Kagen, (D-Appleton) was among lawmakers who said the restrictions are needed because Mexican trucks pose safety and environmental hazards. Read more in
SBT's daily roundup of headlines from newspapers around the state at www.biztimes.com.

In today's Milwaukee Biz Blog, Milwaukee Common Council President Willie Hines responds to Alderman Robert Donovan's rant about crime a day earlier.

With so much at stake, the Healthy Wisconsin reform plan will be under the spotlight at the Milwaukee Press Club's Newsmaker Luncheon next week. Read more in Small Business Times executive editor Steve Jagler's weekly bonus blog at OnMilwaukee.com, a media partner of SBT.

"Your call is important to us …" Well, then why was my call answered by a machine instead of someone who can help me? Author Jeffrey Gitomer has some customer service advice in his weekly Sales Moves column, posted in Milwaukee exclusively by Small Business Times.

Busy readers of the BizTimes Daily can get a jump on a weekend filled with pennant-contending Milwaukee Brewers' games and the Green Bay Packers' season opener by reading OnMilwaukee.com's Weekend Preview.