Local Business

Stocks on Wall Street again weakened after the release of comments from a technology company Cisco Systems Inc. and retailer Kohl’s Corp., which again raises doubts about the economic recovery of U.S. investors.

Cisco issued a warning about the weakness of U.S. labor market, while Kohl’s claims have not convinced the recovery process has been closely handful. The comment directly dampen the mood of investors again before, they had deteriorated because of the debt crisis in the European Union. After removing the comments, Cisco shares fell 4.5% was recorded and Kohl’s dropped 5.8%.

Other data showed the number of workers who enter unemployment claims fell thinner than last week. The data failed to support the data increase the number of workers while providing shade to investors that the unemployment rate is still high.

In trading Thursday (13/05/2010), the Dow Jones closed slumped 113.96 points (1.05%) to the level of 10782.95. Index Standard & Poor’s 500 index also fell 14.23 points (1.21%) to a level of 1157.44 and the NASDAQ fell 30.66 points (1.26%) to a level of 2394.36.

Retail sector stocks are experiencing the pressure with the S & P retail index fell 3% was recorded. Investors await retail sales data for April which will be released on this Friday. Investors so far are still questioning the strength of consumers, who now contribute two-thirds of economic activity.

Tom Alexander, head of Alexander Trading, said retail stocks are still very dependent on the restoration and sensitive to economic weakness.

“That will always be economic regions in question if they begin to question the problem of recovery,” he said as quoted from Reuters, Friday (05/14/2010).

Construction sector stocks also slumped with the construction of the Dow Jones index fell 4%. Investors worried about the prospects of that sector after applicable taxes.

But Dow Jones’s stock decline was arrested by the increase in Alcoa shares up 2.7% after the emergence of the expected aluminum prices will raise if China’s plan to reduce electricity rates could eventually cut the global aluminum supply.

Trade runs are not too busy with transactions in the New York Stock Exchange, only 8.85 billion; below average last year reached 9.65 billion.