Stocks Drop As Jobless Claims Rise Unexpectedly - Spokane, North Idaho News & Weather KHQ.com

Stocks Drop As Jobless Claims Rise Unexpectedly

NEW YORK (AP) - Stocks are tumbling after two disappointing economic reports renewed investors' concerns about the pace of a recovery.

The Labor Department says claims for unemployment benefits rose unexpectedly last week and the Federal Reserve of Philadelphia said manufacturing activity in the mid-Atlantic region has dropped
during August.

The pair of economic reports followed news that Intel Corp. was acquiring McAfee Inc. The deal, valued at $7.68 billion, was not enough to offset the weaker economic readings.

The Dow Jones industrial average is down 170.67, or 1.6 percent, at 10,244.87. The Standard & Poor's 500 index is down 19.91, or 1.8 percent, at 1,074.25, while the Nasdaq composite index is down 39.15, or 1.8 percent, at 2,176.55.
      
(Copyright 2010 by The Associated Press.  All Rights Reserved.)

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