Stock futures drop after unemployment rate jumps |
By SARA LEPRO NEW YORK - Stock futures sank Friday after the government said more jobs were lost in October than expected, pushing the unemployment rate above 10 percent for the first time since 1983. The Labor Department said employers cut 190,000 jobs last month, less than the 219,000 jobs lost in September, but more than the 175,000 job losses economists had forecast. The unemployment rate jumped to 10.2 percent from 9.8 percent in September. The market has been expecting unemployment to top 10 percent before peaking. But the pace of job losses has accelerated and is likely to go higher. The report bodes poorly for consumer spending, a major component of economic activity. Consumers will keep a tight lid on their spending if they are worried about losing their jobs. A robust economic recovery won't be sustainable if consumers don't pick up their spending. Dow Jones industrial average futures fell 67, or 07 percent, to 9,887, after being up about 15 points prior to the report. Standard & Poor's 500 index futures fell 8.00, or 0.8 percent, to 1,055.20, while Nasdaq 100 index futures fell 12.25, or 0.7 percent, to 1,707. A service of YellowBrix, Inc. |
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