Wall Street stocks are on pace to extend losses for a ninth consecutive session as the major indices are now representing year-to-date losses. Economic data released today further suggested that the U.S. recovery is slowing, and could be on the verge of a recession. Stocks initially responded well to data showing the private sector adding more jobs than expected in July, but quickly turned sour when reports of the services sector falling in July and factory orders falling in June. Investors are also growing concerned that the new budget bill and federal spending cuts could hamper any growth in economic activity. While it may have averted an immediate disaster by preventing a default, the risk of a credit rating downgrade and negative impacts on social program cuts means the long-term outlook of the economy is far from stable. Oil prices plummeted to $91 a barrel as investors grow increasingly fearful of slowing economic activity and declining demand. Precious metals, however, are still pushing higher with gold at $1,671 an ounce and silver close to $42 an ounce.
Major U.S. Stock Indices
DJIA: 11,776.89 (-0.76 percent)
S&P 500: 1,245.68 (-0.67 percent)
NASDAQ: 2,659.74 (-0.36 percent)
Russell 2000: 759.97 (-0.92 percent)
In other news:
- Add China and Russia to the list of those that aren’t happy with the U.S.’s new debt deal. [Bloomberg]
- Private sector jobs increased in July, but so did announcement for more job cuts. [Marketwatch]
- With its back firmly against the wall, Research in Motion (RIMM) plans to launch a bevy of phones to combat Apple’s (AAPL) dominance. [WSJ]
- Is the U.S. really on track to become the next Greece in three years? [CNBC]
- Ever the bull, Jim Cramer says now is the time to move back into growth stocks. [The Street]
Check back for more news.