Stocks fall on unemployment report
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Stocks fell in early trading on Thursday after a disappointing jobs report and some big corporate announcements from Apple and Bank of America.
U.S. stock markets initially surged after Bank of America announced it was getting a $5-billion investment from Warren Buffett, similar to the investment that helped restore confidence in Goldman Sachs during the financial crisis. The news drove up shares in several financial firms that have been struggling recently.
Beyond bank stocks, though, share prices flagged and the market’s momentum was quickly lost. Among the stocks losing value was Apple; the technology giant announced Wednesday after the markets closed that its chief executive, Steve Jobs, will be stepping down.
The Dow Jones industrial average was recently down 103.46 points, or 0.9%, to 11,217.25. The technology-heavy Nasdaq composite index was down even more sharply, as was the broader Standard & Poor’s 500 index.
The government’s weekly report on unemployment claims showed that the number of people filing for unemployment benefits climbed last week to 417,000, the most in five weeks.
Gold, which has served as a haven during the recent economic turmoil, continued to fall in value as some investors questioned whether the precious metal has become overvalued.
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-- Nathaniel Popper
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