Stocks weaken on job numbers

NEW YORK (AP) — A September stock rally weakened on Thursday as investors were disappointed by a jump in unemployment claims and more signs of trouble for Europe’s economy.

The market got off to a bad start after applications for unemployment benefits rose unexpectedly last week. European stocks also sank after following a lower reading on business activity in the 16 countries that use the euro and news that Ireland’s economy shrank 1.2 percent in the second quarter.

The Dow Jones industrial average closed down 77 points, its second day of losses. The Standard & Poor’s 500 index, the benchmark most often used by professional investors, fell below a key threshold watched by technical analysts. Gold hit another record as traders sought safe havens.

The slide raised doubts about whether a three-week rally that vaulted stocks higher in September would continue. The Dow is still up 6.5 percent for the month, but is 4.8 percent below its 2010 high reached on April 26. For the year, it’s up 2.2 percent.

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