Stocks open lower as economic woes mount
Slumping retail sales figures fuel fears of weakening consumer spending. Technology stocks suffer after Cisco forecasts a decline in sales.
Reporting from New York — Stocks slumped for a second consecutive day this morning as disappointing sales at retail firms aggravated fears about weakening consumer spending.
The Dow Jones industrial average sagged almost 300 points after dismal sales and profit numbers at companies such as Macy's Inc., Nordstrom Inc. and Gap Inc. Wal-Mart Stores Inc. said sales rose modestly from a year ago, but that only cemented concern about the plight of higher-end retailers.
Technology stocks suffered after networking giant Cisco Systems Inc., which is considered a bellwether for overall industry demand, forecast late Wednesday that sales will decline as much as 10% in its fiscal second quarter.
As of 8:50 a.m. Pacific time, the Dow was off 283.39 points, or 3.1%, to 8,855.88. Combined with Wednesday's 486-point drubbing, the blue-chip indicator is down 8% in two days.
The Standard & Poor's 500 index slid 28.63 points, or 3%, to 924.14. The Nasdaq composite index dropped 39.91 points, or 2.4%, to 1,641.73.
Unemployment fears remained high as initial claims for unemployment insurance remained over 480,000 last week and long-term claims reached their highest mark in 25 years.
Hamilton is a Times staff writer
walter.hamilton@latimes.com
