U.S. Markets Plunge On Weak Economic Data

New York, NY (AHN) - The markets opened Thursday lower after unemployment data showed claims at a seven year high. Selling intensified shortly after the open when August factory orders came in weaker than expected. All three major indices finished the session on lows.

Before the markets opened, the Labor Department said initial claims by 1,000 for the week ending Sept. 27, bringing total claims to 497,000, levels not seen since the Sept. 11 terrorist attacks.

The Commerce Department released August Factory orders that failed to meet expectations, dropping 4 percent from July, much worse than the 2.5 percent drop forecasted.

All told, the economic news left investors uneasy heading into the House bailout vote on Friday morning. Sellers controlled the action with decliners outpacing advancers 5 to 1 on the New York Stock Exchange.

The Dow Jones Industrial average slid 348 points or 3.22 percent. A late rally helped JP Morgan, Kraft and Procter & Gamble finish slightly higher while all other Dow components closed lower.

The Dow Transports saw its biggest one day decline in nearly a year, falling 9 percent after freight company Con-Way slashed their earnings guidance and said demand for freight shipping has fallen.

The S&P 500 was off 46 points or 4 percent. Commodity stocks were sold off across the board, leading the energy and materials sector to weigh on the S&P index.

Tech stocks posted the largest percentage decline, the Nasdaq Composite fell 92 points or 4.4 percent. Big-cap tech names did not fare much better as the Nasdaq 100 slid 4.6 percent on Thursday.

General Electric, just a day after the Warren Buffett investment news, fell 9.6 percent to $22.13, below the $22.50 price of their secondary common stock offering.

Crude oil slipped $4.56 a barrel, settling at $93.97 on the New York Stock Exchange.

All eyes will be on the House of Representatives tomorrow. A vote on the revised bailout plan is scheduled to occur sometime Friday morning.