NEW YORK (AP) — Wall Street dived sharply lower Thursday, sending the Dow Jones industrials down over 300 points as retailers and the Labor Department added to the mountain of dismal economic news that has all but dashed investors' hopes for a late-year recovery.
The nation's major retailers said shoppers curtailed spending last month due to higher gas and food prices. Wal-Mart Stores Inc., the world's largest retailer, beat expectations, but many teen retailers and luxury chains did poorly.
Meanwhile, the Labor Department said new applications for unemployment insurance rose by 15,000 from the previous week. That broadly missed expectations for a fourth-straight week of declines, and heightened worries that the average American — already feeling the effects of the weak housing market — will have even less means to spend.
"The initial jobless claims number was higher than expected," said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams, adding that investors are all worried about the Labor Department's employment report Friday. "It's just a perfect storm."
Investors are not expecting any promising news in the Labor Department's August jobs report on Friday. Economists are predicting the eighth straight monthly payrolls drop, and a rise in the unemployment rate.
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