i'll take that bet as well....
In a sign of persistent weakness in the U.S. economy, a widely watched measure of business activity declined in August for the third consecutive month.
Other clouds also appeared on the economic horizon. The number of new claims for jobless benefits rose last week in the wake of hurricanes pummeling the southeastern United States. Meanwhile, oil prices soared again, nearly reaching their all-time highs.
The Conference Board reported its Composite Index of Leading Economic Indicators fell 0.3 percent in August, to 115.7, following a 0.3 percent drop in July. The index measures a variety of economic factors, including manufacturers' orders, interest rates, and building permits. It had not fallen three months in a row since the first quarter of 2003.
''Consumers worry about their wages and salaries, which could limit spending. Businesses worry about their ability to raise prices and to cover rising costs,'' said Ken Goldstein, an economist for the Conference Board, a private research group based in New York.
The stock market seemed put off by the signs of listlessness in economy. The Dow Jones industrial average fell 70.28, or 0.7 percent, to 10,038.90, logging its second straight day of losses. The Dow plunged more than 135 points on Wednesday.
The broader Standard & Poor's 500 index slipped 5.20, or 0.5 percent, to 1,108.36. But the tech-dominated Nasdaq index eked out a gain of 0.72, or 0.04 percent, closing at 1,886.43.
Oil prices continued to be a concern to investors, posing a possible threat to corporate profits and consumer spending. A barrel of light crude closed at $48.46 Thursday, up 11 cents on the New York Mercantile Exchange, after reaching a high of $49 during the day. Crude futures closed at a record high of $48.70 on August 19, and hit their record price of $49.20 a barrel on August 20.
"Oil prices are a huge uncertainty," said Lou Crandall, chief economist at Wrightson Associates in New York City.
Still, the stocks of oil companies were among those leading Thursday's stock market decline, perhaps in anticipation of when oil prices fall again. Exxon Mobil, the biggest oil company, was the Dow's biggest decliner. It lost $1.10, closing at $47.76, after an analyst at Deutsche Bank cut his rating of the stock. Other oil stocks also fell. ChevronTexaco fell 82 cents, closing at $52.32. Baker Hughes slipped 56 cents to $42.63.
Other stocks that lost ground included Bed Bath & Beyond, which tumbled $1.99 to $37.59. The home-furnishings retailer said second-quarter sales fell short of consensus estimates. Appliance makers Maytag and Whirlpool also lost ground. Maytag fell 95 cents to $18.54, and Whirlpool slid $1.23 to $61.80
On the jobs front, the U.S. Labor Department Thursday reported that the number of people filing first-time claims for unemployment insurance increased to 350,000 -- a jump of 14,000. But most of those new jobless claims resulted from the Florida hurricanes, analysts said. And the number came in lower than the 387,000 new jobless claims in the same week a year ago.
"Employment still isn't where we want it to be," said Carl Tannenbaum, chief economist for La-Salle Bank in Chicago.
The Conference Board's Index purports to forecast the state of the economy over the next three to six months. But several economists took exception to that Thursday, saying growth would continue into next year.
The index "is definitely capturing the fact that we had a soft patch in the economy this summer. [But] it tells you very little about what's going to happen next," Crandall said.
"The past few years have been characterized by a series of bursts of growth punctuated by periods of soft patches."
"There are a lot of uncertainties out there right now, and those uncertainties are threatening to hold back consumers and businesses," Tannenbaum added.
in my opinoin, the tech market will boom if anything, but everything else is gonna preety much stay where it has. the market hasn't done anything but squat these last few years.
DO IT!!
