Issue link: https://www.epageflip.net/i/34755
10A Daily News – Friday, June 24, 2011 NEW YORK (AP) — A jump in claims for unem- ployment benefits and plummeting oil prices drove stocks lower Thurs- day. The decline follows a slide that began Wednesday after the Federal Reserve said the U.S. economy is growing slower than expected. The Dow Jones industri- Stocks sink after weak jobs report; oil drops Wall Street April. A drop of 10 percent or more would signal a market correction. ‘‘This is no longer look- ing like a small soft patch. It’s beginning to look more like quicksand,’’ said al average dropped more than 185 points in early afternoon trading Thursday. Since late April, eco- nomic indicators ranging from manufacturing activi- ty to retail sales have come in weaker than economists anticipated. That, in turn, has helped pull the stock market sharply lower. The Standard and Poor’s 500 index is down 6.7 percent since reaching a high for the year of 1363.61 in Lawrence Creatura, a stock portfolio manager at Feder- ated Investors. The rising number of first-time applications for jobless benefits indicated there has been little improvement in the job market since the May unemployment report showed a drop in the num- ber of new jobs created. New applications for bene- fits rose to 429,000 last week, from 420,000 the week before. ‘‘400,000 is the magic number and we’ve been above it for 11 weeks,’’ Creatura said. The Dow dropped 190 points, or 1.6 percent, to 11,920 in afternoon trading. The S&P 500 fell 18, or 1.4 percent, to 1,269. The Nas- daq composite lost 17, or 0.6 percent, to 2,653. Energy companies like Exxon Mobil and Chevron Corp. led the market down- ward after oil prices tum- bled nearly 5 percent. Oil dropped after the Interna- tional Energy Agency said 60 million barrels of oil would be released from reserves to make up for the loss of Libyan exports. Oil prices had spiked following unrests in Middle East and North Africa, raising con- cerns that higher fuel costs would slow the world econ- omy. Companies like Netflix and Priceline.com and oth- ers in the consumer discre- tionary category fell less than the overall market. Investors are betting that a drop in oil costs could lead consumers to spend more money on things like movies, restaurants and clothing. Chipotle Mexican Grill gained 1.3 percent. Other companies that benefit from lower fuel costs also rose. Airline stocks like United Conti- nental Holdings Inc. and AMR Corp, the parent company of American Air- lines, rose more than 3 per- cent. Among the most active stocks, Bed Bath & Beyond gained 5 percent after the home furnishings retailer posted a 31 percent jump in income. The com- brands cut its earnings esti- mate for the current quar- ter. Government bond prices were higher as traders shift- ed money into investments that are considered safe, pushing long-term interest rates lower. The yield on the 10-year Treasury note sank to 2.90 percent, its low mark for the year. Bond yields fall when their prices rise. pany also raised its earn- ings forecast for the rest of the year, in part because of cost controls it has in place. ConAgra Foods Inc. fell 1 percent. The owner of Slim Jim and Hebrew National A weaker job market is just the latest drag on the stock market. Europe’s debt problems and a slowing growth rate in China have combined to push stocks lower in the last six weeks. On Wednesday, Federal Reserve Chairman Ben Bernanke said problems plaguing the economy may last longer than previously thought. Greece presses banks, low-earners in debt crisis ATHENS, Greece (AP) — Greece’s beleaguered government said Thursday it will start taxing minimum-wage earners and encourage local banks to help the state delay debt payments for bonds maturing as late as 2015. Evangelos Venizelos, the country’s new finance minister, also said the government is encouraging a deferment scheme under the so-called ‘‘Vienna initiative,’’ signing up private investors to voluntarily renew their debt holdings as they expire. Similar talks are currently being led my other national finance ministries in the 17- country eurozone in an attempt to lower the amount of money the countries and the International Monetary Fund have to lend Greece in its second bailout within a year. The next big challenge for Greece is to have parliament approve a new round of austerity measures before getting the vital next batch of loans, worth (euro) 12 bil- lion, out of its existing (euro) 110 billion rescue fund. Venizelos predicted that next week’s vote would be successful. Fireworks From the Chamber! Go to Buy your Family www.tntfireworks.com To get your discount coupon! Chamber fireworks locations: Belle Mill/FoodMaxx Shopping Center, Antelope & I-5 June 28th - July 4th • 10am to 8pm 100% of profits from this location go to pay for the giant FIREWORKS DISPLAY At the TC Fairgrounds on July 4! Red Bluff – Tehama County Chamber of Commerce Working to make Tehama County an even Better Place to Live, Work and Play! Published through a project co- sponsorship agreement with D NEWSAILY RED BLUFF TEHAMACOUNTY sponsorship agreement with the D NEWSAILY Published through a co- RED BLUFF TEHAMACOUNTY Tehama County Business Tell us why and you could win a $100 gift certificate at any Simply answer the question, “What makes the USA unique as a nation?” in 250 words or fewer 3 winners • 1 Youth (18 & under) • 2 Adults Tehama County residents & the deadline for Essays must be written by entries is 5 pm June 27 Submit entries to PO Box 220, Red Bluff, 545 Diamond Ave. in Red Bluff or by e-mail to editor@redbluffdailynews.com and include your name, age and phone number. Winning entries will be published on July 1 in a special Independence Day weekend insert to the Daily News