Projo Biz Blog

NEW YORK -- Wall Street fell sharply again today after the government's much-anticipated employment report showed weaker-than-expected job growth and a rise in the unemployment rate. The Nasdaq composite index, also pummeled by a downgrade of Intel Corp., skidded more than 3.5 percent, while the Dow Jones industrials fell more than 1.5 percent.

The Labor Department's report that employers raised payrolls by only 18,000 and that the nation's unemployment rate rose to its highest level since November 2005 unnerved investors, who worried that a weakening job market will hurt consumer spending and tip the economy toward recession.

A better-than-expected reading on the nation's service economy briefly pulled stocks off their lows but wasn't enough to shake investors' concerns.

Investors had been awaiting the jobs report for weeks as they tried to determine whether the economy would continue to benefit from robust consumer spending even as sectors like home construction, mortgage writing and manufacturing slow. Wall Street is concerned that areas of weakness could puncture growth if consumers can't depend on a solid job market.

The good news angle: Oil prices also fell on the jobs report.

Oil futures retreated further from their record levels above $100 a barrel Friday after the government reported lower-than-expected job growth in December, adding to fears of a recession that could crimp demand for oil.

But back to the not-so-good news: Gas prices, meanwhile, rose 2.2 cents a gallon overnight, following crude's recent rally.

Get a roundup of today's business news from the Associated Press ...

Full story ...

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