Employers cut 533,000 jobs in November as the unemployment rate rose to 6.7%, its highest level in 15 years. Meanwhile, oil prices fell to the $42 a barrel level. The Dow lost nearly 100 points to 8278 while Nasdaq fell 16 points to 1429.
On the upside
General Motors (NYSE: GM) announced plans to cut 2,000 factory jobs early next week even as its CEO pleads for bailout funds from Congress.Safeway (NYSE: SWY) projected growth through aggressive cost-cutting in 2009. Analysts promptly upgraded the grocery chain.
Shares of Hartford Financial Services Group (NYSE: HIG) surged after the insurer raised its current quarter and full-year outlook.
On the downside
Shareholders on Merrill Lynch (NYSE: ML) approved the investment
bank's sale to Bank of America (NYSE: BAC) to become the
nation's largest financial services company.
Closeout retailer Big Lots (NYSE: BIG) posted weak sales growth and flat earnings. Analysts had expected its discounted products to attract more bargain shoppers.
Microsoft (Nasdaq: MSFT) has hired a former Yahoo search executive to lead its online services group.In
the broad market, declining issues outpaced advancers by a margin
of more than 3 to 1 on the NYSE and by more than 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap
stocks fell 5 points to 434.
