News / USA

US Stocks Fall on Weakening Recovery

Multimedia

U.S. stocks fell for a third day as disappointing earnings and economic news showed signs of a weakening recovery.  The Dow Jones Industrial average fell more than 60 points before the opening bell on Thursday after technology giant Cisco posted weaker than expected growth.  The Dow has fallen more than 300 points since Tuesday, after the Federal Reserve lowered its assessment of the U.S. recovery.  New jobless claims announced on Thursday only added to the sour mood.

The US Labor Department says new jobless claims hit a six month high last week as 484,000 Americans signed up for unemployment assistance.  

The report comes after the Federal Reserve said the pace of recovery is likely to be more modest than anticipated.

Standard and Poor's investment strategist Alec Young. "It was just reaffirmation that the recovery is weaker than expected and that the risks of a double dip have gone up," he said.

A surge in housing defaults only added to investor worries.  

Realty Trac, which monitors the housing market, says foreclosures rose four percent in July.  That means one in almost 400 U.S. homes has received a foreclosure notice.

Those numbers were more than statistics in Atlanta - where thousands lined up for hours to get on a waiting list for public housing assistance.

Despite low interest rates, the U.S. housing market remains weak.  

But economist David Resler at Nomura Securities believes the worst may have passed. "We think that we're close to the bottom, but we may bounce along the bottom for a while yet because there's still a lot of uncertainty in the minds of potential home buyers and home sellers about where things are headed," he said.

Wall Street remained on edge Thursday as traders digested more disappointing earnings reports.

Resler told VOA that market volatility is due mostly to uncertainty - investors not knowing which way the wind will blow.  "I think right now what the economy needs is several months of simply stability, in terms of policy. I think the focus should be right away on extending the Bush tax cuts either across the board or to those making less than $250(,000 per year).

The tax cuts are set to expire at the end of the year.  Democrats and Republicans are sharply divided.  Democrats say ending the tax cuts to wealthy Americans would ease the burden on the middle class and reduce the deficit by 30 percent.

Republicans argue that lower taxes for those earning more than $250,000 a year, would result in more hiring.   

The issue could play a role in crucial mid-term elections in November.

You May Like

Australia Knights Prince Philip, Sparking National Outrage

Abbott's surprise reintroduction of knights and dames in the country's honors system last year drew criticism that he was out of touch with national sentiment More

SAG Award Boosts 'Birdman' Oscar Hopes

Individual acting Oscars appear to be sewn up: SAG awards went to artists who won Golden Globes: Julianne Moore, Eddie Redmayne, Patricia Arquette, J.K. Simmons More

Katy Perry Lights Way for Super Bowl's Girl Power Moment

Pop star's selection to headline US football championship's halftime show extends NFL's trend of selecting artists who appeal to younger viewers More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Zoo Animals Show Their Artistic Sidesi
X
June Soh
January 23, 2015 10:03 PM
The pursuit of happiness is so important, America's founding fathers put it in the Declaration of Independence. Any zookeeper will tell you animals need enrichment, just like humans do. So painting, even music are part of the Smithsonian National Zoo's program to keep the animals happy. Faith Lapidus narrates a report from VOA’s June Soh.
Video

Video Zoo Animals Show Their Artistic Sides

The pursuit of happiness is so important, America's founding fathers put it in the Declaration of Independence. Any zookeeper will tell you animals need enrichment, just like humans do. So painting, even music are part of the Smithsonian National Zoo's program to keep the animals happy. Faith Lapidus narrates a report from VOA’s June Soh.
Video

Video Progress, Some Areas of Disagreement in Cuba Talks

U.S. and Cuban officials are reporting progress from initial talks in Havana on re-establishing diplomatic ties. U.S. Assistant Secretary of State (for Western Hemisphere Affairs) Roberta Jacobson said while there was agreement on a broad range of issues, there also are some “profound disagreements” between Washington and Havana. VOA State Department correspondent Pam Dockins has the story.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.
Video

Video US Marching Bands Grow Into a Show of Their Own

The 2014 Super Bowl halftime show was the most-watched in history - attracting an estimated 115 million viewers. That event featured pop star Bruno Mars. But the halftime show tradition started with marching bands, which still dominate the entertainment at U.S. high school and college American football games. But as Enming Liu reports in this story narrated by Adrianna Zhang, marching bands have grown into a show of their own.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid