Stocks sink again

Dow is down 216, decliners over advancers 5-1 and NAZ dropped 41. The losses have doubled since I started writing. S&P 500 FINANCIALS INDEX is down 6 to 288, can't get out of its sideways trading for the last 3 months. Oil is steady before the delayed weekly inventory report. The 2 Dow oils, Chevron (CVX) and Exxon-Mobil (XOM), are down about 1% while the Alerian MLP index is down 3 to the 264, going to test of the yearly lows of 260ish.

Weak retail sales for back-to-school season are bringing out sellers.

Wal-Mart Sales Exceed Estimates; Gap, Nordstrom Drop on Weakened Demand

Wal-Mart (WMT), a Dow stock, up 86¢, did well featuring discounts and bargains. But others like Saks (SKS), Nordstrom (JWN), etc., didn't. Expectations for back-to-school sales, 2nd most important season for retailers, will show only a 1% increase (at best).

Also hurting the markets was a weak report on jobless claims. Claims rose 15K to 444K, very high. Above 400K is considered troubling for the economy & the number has been above that level for a few months.

• Jobless Claims Take Unexpected Jump- AP

More gloomy news on the economy:

• Private Sector Cuts 33,000 jobs in August: Report- Reuters
• Services Grow on Increasing Orders, Less Inflation- AP
• Productivity Up Strongly While Labor Costs Dip- AP

The most interesting for me was the 4.3% increase in productivity in Q2. This was higher than forecasts & raises the thought that higher inflation from factory goods may follow.

Bill Gross, who heads Pimco, the largest owner of bonds, says the Federal Reserve needs to get more involved to fix the financial mess.

`Financial Tsunami' to Engulf Markets Unless Treasury Steps In, Gross Says

These thoughts aren't helping markets today.