July 10, 2009: Highlights Of Low Points In U.S. Economy

July 10, 2009 3:56 p.m. EST

Washington, D.C. (AHN) - Consumer sentiment dropped in early July due to job worries. Those concerns received additional support Friday after a credit card company announced it is cutting 50 percent of staff.

Shortly after the opening bell, the Reuters/University of Michigan preliminary index of consumer sentiment for July fell to 64.6, its lowest reading since March as concerns over the job market worried Americans.

The result was well below the June reading of 70.8 and short of the small drop to 70 economists expected.

The expectation portion of the survey tumbles as well, down to 60.9 from 69.2 as consumers outlook of the economy going forward wavered.

Results of the consumer sentiment survey put additional pressure on retail stocks that are still reeling from Wednesday's poor July sales results. Weak consumer sentiment does not bode well for retail sales going forward as purse strings remain tight.

Concerns over the job market received more confirmation after Advanta Corp., a credit-card company announced it will cut half of its staff as it will stop doing business with small businesses.

Advanta will have less then 200 employees after the move is complete. The company said all departments will be impacted and that it will take charges upward of $9.5 million for the move.

The company has been scrambling to reign in costs and shed bad business after seeing default rates jump to 20 percent last quarter.