Unemployment spike causes stocks to fall

NEW YORK (AP) — A surprisingly poor signal on the jobs market sent stocks slightly lower Thursday as investors remained worried about a lack of hiring.

The modest drop came after the Labor Department said first-time claims for unemployment benefits rose unexpectedly last week.

Investors tried to muster a late-day rally, but there wasn’t enough momentum to push the Dow Jones industrial average back into positive territory. The Dow closed down 5 points after dropping as much as 68 points earlier in the day. Broader indexes also fell modestly.

Trading volume on the New York Stock Exchange fell to its second-lowest level of the year as many traders avoid the market altogether.

The Labor Department said initial claims for unemployment benefits jumped to 479,000 last week from a 460,000 a week earlier. Economists polled by Thomson Reuters had forecast new claims would fall modestly.

Tags: us business, business, economy, stocks, unemployment, jobs, market