Traders work in the New York Stock Exchange on Dec. 1, 2008. Wall Street plunged amid economic woes Monday as investors cashed in some of their gains from the big rally in the previous week and key economic reports showed economic slowdown. (Xinhua/Reuters Photo) Photo Gallery>>>
NEW YORK, Dec. 1 (Xinhua) -- Wall Street plunged amid economic woes Monday as investors cashed in some of their gains from the big rally in the previous week and key economic reports showed economic slowdown.
Retail sales data failed to boost the market. According to preliminary calculation by RCT Shopper Trak, a research firm that tracks total retail sales at more than 50,000 outlets, sales rose slightly on Black Friday, which is traditionally one of the biggest shopping days of the year, showing that consumers are cautious as the economy slows down.
Anxiety about the economy also weighed on stocks. The U.S. Institute for Supply Management posted its index of manufacturing activity fell to a 26-year low in November. Meanwhile, the U.S. Commerce Department said construction spending dropped by 1.2 percent in October, bigger than the 0.9 percent decline analysts had expected.
The National Bureau of Economic Research (NBER), a private nonprofit research organization, announced Monday that U.S. economy has been in a recession since December 2007.
"The peak marks the end of the expansion that began in November2001 and the beginning of a recession. The expansion lasted 73 months; the previous expansion of the 1990s lasted 120 months," NBER said in a statement.
The Dow Jones industrial average fell 679.95, or 7.70 percent, to 8,149.09. The Standard & Poor's 500 index dropped 80.03, or 8.93 percent, to 816.21, while the Nasdaq composite index fell 137.50, or 8.95 percent, to 1,398.07.
A traders works in the New York Stock Exchange on Dec. 1, 2008. Wall Street plunged amid economic woes Monday as investors cashed in some of their gains from the big rally in the previous week and key economic reports showed economic slowdown. (Xinhua/Reuters Photo) Photo Gallery>>>
WASHINGTON, Dec. 1 (Xinhua) -- U.S. economy has been in a recession since December 2007, the National Bureau of Economic Research (NBER) said Monday.
The Business Cycle Dating committee of the NBER, a private, nonprofit research organization, said its members met by conference call on Friday.
And the committee "identified December 2007 as the peak month, after determining that the subsequent decline in economic activity was large enough to qualify as a recession." Full story
LOS ANGELES, Dec. 1 (Xinhua) -- As the U.S. auto market marches toward its worst year in decades and dealers close in droves, state and local governments across the country are preparing for serious belt-tightening.
Sales of new and used cars, as well as parts and service, are the single largest source of sales tax revenue for almost every state, county and local government, but those figures were down substantially these days, according to a Los Angeles Times report Monday. Full story
WASHINGTON, Dec. 1 (Xinhua) -- Economic activity in the U.S. manufacturing sector failed to grow in November for the fourth consecutive month, while the overall economy contracted for the second straight month, the Institute for Supply Management (ISM) reported on Monday.
The ISM, a trade group based in Tempe, Arizona, said its manufacturing index, which reflects the opinions of purchasing managers at factories, plants and utilities, registered 36.2 last month, down from 38.9 in October and lower than analysts' expectations of 38.4. Full story
