Negative unemployment news & sharply higher oil sinks stocks. Dow was down 276, decliners ahead of advancers 4-1 & NAZ was down 43. This is shaping up as another ugly day on the news stories. The unemployment rate rose ½% in May to 5.5%, the biggest monthly rise in 22 years. Oil shot up 7 to near 135 on prediction it may reach 150 by July 4. This brings the 2 day gain to 12. Can you spell, uh-oh?
S&P reported that the number of companies around the world on credit watch in May was at a record level, 738. These companies are facing credit downgrades because of worsening financial conditions. Much of their problems come from the housing & financial sectors. American International Group (AIG), a troubled Dow stock, is facing an SEC investigation over whether it may have overstated complicated financial productions related to sub-prime investments. The stock is down 2.27 to it's lowest level in over 10 years. The US economy remains soft, getting clobbered by credit issue problems & higher priced oil.
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