Unemployment Rises, Oil Prices Up

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BusinessUnemployment Rises, Oil Prices UpUnemployment Rises, Oil Prices UpThe Associated PressIt was a batch of bad for the economy today, and the Dow industrials tanked in response falling nearly 400 points. The dive followed the biggest monthly jump in unemployment in 20 years. It's the biggest one day surge in oil prices ever. (June 6)[Notes:ANCHOR VOICE] It was a down day on Wall Street Friday....way down.Stocks tanked ----with the Dow industrials sinking almost 400 points to close close to 12,210. (( twelve thousand, two hundred ten))Also suffering Friday--the tech heavy NASDAQ--which lost three percent. To blame ------A spike in oil prices -- up more than 11 dollars per barrel. The release of the May jobs report also worried investors. The Labor Department said the nation's unemployment rate rose to 5.5 percent in May. [Notes:Sam Stovall, Senior equities analyst at Standard and Poor's:]SOT: "I think that now that we are seeing energy prices remain stubbornly high, consumer confidence being at a 15 year low and that also now with employment falling more than people had anticipated, that as a result I think investors are now trying to regauge what kind of a forecast they can have for this recession and what it is likely to do to the economy in general and to other sectors of the economy - in particular retailers." Already, consumers are spending less due to soaring food and energy prices and oil's ascent on Friday added to the market's trepidation. [Notes:Sam Stovall, Senior equities analyst at Standard and Poor's:] SOT: "So I think in general investors are trying to figure this out to say if the rest of the world continues to do fairly well and that demand for energy remains fairly healthy and at the same time, the value of the dollar declines, which also is providing some support to energy prices, that as a result there probably could be sort of a cascading effect on the economy and possibly on the overall market." Signs that the job market is deteriorating more than anticipated ----could thwart Wall Street's hopes that the economy was poised for recovery later this year ----a belief that HAD helped drive the stock market higher over the past few months. ___ ___, The Associated Press.(****END****) ANCHOR VOICE: Mike Gracia -------------------------VIDEO PRODUCER: Michael Waldon ------------------------------VIDEO SOURCE: APTN--------------------------VIDEO APPROVAL: Donna Starddard ------------------------------VIDEO RESTRICTIONS:----------------------------------SCRIPT/WIRE SOURCE:------------------------------------

Category: News
Uploaded: June 7th, 2008 @ 1:49 am
Author: AssociatedPress

Length: 01:40
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Tags: oil rises street unemployment up wall

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