Grim unemployment figures sink stocks

The ugly unemployment picture sank stocks. Dow dropped 93, decliners over advancers 2½-1 & NAZ dropped a big 32 (after yesterday's nice gain). For over 2 months Dow has been in a rut, staying close to 8½K. Bulls say that's good, calling it base building.


Dow Jones Industrials --- 2 months





The S&P 500 FINANCIALS INDEX sank, testing the monthly low of 155.

Value 157.76

Change -3.55

% Change -2.2%

Other high yield securities pulled back a little & VIX was down pennies.

Oil slipped on the dreary economic news. Next, it may test recent lows in the high 30s.

CLG09.NYM

...Crude Oil Feb 09

...39.78

... 1.92 .......(4.6%)

The dreaded unemployment came in worse than feared. The unemployment rate shot up to 7.2%, vs 6.9-7.0% expected by analysts, the highest rate since 1992. Recent corp layoffs will only add to this misery. Last year the US economy lost 2.6M jobs, the worst loss in over 60 years. The economy took a severe hit after the Sep financial meltdown, 1½M jobs were lost in Q4.

•Employers in U.S. Cut 524,000 Jobs Last Month; 2008 Losses Most Since 1945


The new administration team is assessing the financial mess, trying to come up with new ideas for repairs. I'm not sure what to expect other than a massive increase in gov deficits will add to the gov debt load. Markets are digesting the negative unemployment, retail sales, etc. news. There probably won't be a lot of action this PM unless it's selling going into the weekend.