Dow Jones Industrial Average Down Over 600 Points

Dow Jones Industrial Average Down Over 600 Points - Breaking: Dow Jones Industrial Average Down Over 300 500 600 Points 08 Aug 2011.
Stocks are plunging in another broad sell-off as investors grow concerned about an economic slowdown in the U.S. and Europe. The Dow Jones industrial average was down around 300 points, erasing its gains this year. The index is now down more than 1,000 points from July 21. The Standard & Poor’s 500 index sank more than 3 percent, bringing it more than 10 percent below its recent high of 1,363 reached on April 29. A decline of 10 percent is considered to be a market correction. The U.S. government said before the market opened that the number of people who applied for unemployment benefits for the first time edged only slightly lower last week to 400,000. That’s still above the 375,000 level that economist say indicates a healthy job market. It was the latest indication of weakness in the U.S. economy. Stock trading has been volatile this week because of concerns that the U.S. economy is weakening. Manufacturing, consumer spending and hiring by private companies are below levels that are consistent with a healthy economy. The financial markets also were apparently unmoved by the recently approved deal to raise the U.S. government’s debt ceiling and reduce the deficit, which came after weeks of highly contentious negotiations that brought the U.S. to the brink of a possible first-ever default. General Motors Co. fell 2 percent despite beating analyst estimates. CVS Caremark fell nearly 4 percent after its revenue slipped last quarter. Several national retailers are announcing July sales results throughout the day. Target, Gap Inc. and Macy’s each fell by more than 1 percent, in part because of concerns that consumers would further cut back shopping if the economy continues to slow down. The Dow rose 30 points Wednesday — after being down 166 — to break an eight-day losing streak. Nine days would have been the longest since February 1978. The S&P 500 index rose 6 points and broke a seven-day streak.
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