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

China Investigates Former Powerful Security Chief

Former security chief and member of Politburo Standing Committee, Zhou Yongkang, under investigation for suspected 'serious disciplinary violation' More

India, US Look to Reset Ties During Kerry Visit

This week's talks will be first high level interaction between two countries since Prime Minister Narendra Modi took charge More

Video Young African Leadership Program Renamed to Honor Mandela

YALI program, launched by President Obama in 2010, aims to build skills in business, entrepreneurship, public management and civic leadership 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.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid