Jul 4, 2008 12:59 pm US/Eastern
CBS4 Your Money: A Week Of Poor Economic News
The Dow Jones Industrial Average Declined By More Than 20% And Went Into Bear Market Territory
MIAMI (CBS4) ―
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Traders work on the floor of the New York Stock Exchange.
Spencer Platt/Getty Images
Overall US economic data released this week was disappointing except for manufacturing which just sqeaked above its previous slowdown in past quarters. But it was followed with employment data which all went into negative territory for the sixth consecutive month.
Monday started out on Wall Street with a dismal showing as stocks struggled back and forth off bear-market levels.
Then, on Tuesday, all eyes were on Detroit with the Big Three American automakers reporting double-digit sales declines. GM said its U.S. sales fell 18% in June versus a year ago.
The following day, Starbucks announced that it was closing 600 stores. The Seattle coffee company is cutting 5 percent of its U.S. locations as part of a wide-ranging effort to boost its bottom line and its stock price. The chain is accelerating international growth.
On Thursday, pink slips continued as the Labor Department reported 62,000 more jobs eliminated in June. That was compounded by an announcement from American Airlines that it was scaling back operations, and that hundreds of jobs would be lost in South Florida.
The market was closed for Independence Day fireworks, though, not before oil prices exploded to record highs.
Oil prices headed into the busy Fourth of July break by racing past $145 a barrel for the first time Thursday. The story was no different at the gas pump, where the national average soared to within a whisker of $4.10 a gallon.
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