Retail Sales Fall, Jobless Above 4 Million

123jump.com Staff
04 Dec, 2008
New York City

Initial claims of unemployment fell at the end of last week but number of insured unemployed persons rose above 4 million. November same store sales fell sharply, despite initial surge in the holiday period. AT&T Inc plans to eliminate 12,000 jobs, nearly 4% of its staff.

[R]11:35AM New York – U.S. stocks traded sideways in weak volume. Same store retail sales fell in November. AT&T plans to lay off 12,000 people.[/R]

Initial claims of unemployment fell at the end of last week by 21,000 to 509,000. The claims are adjusted for seasonal fluctuations. The adjusted total number of unemployed people at the end of last week rose 89,000 just above 4 million.

Puerto Rico, Oregon and Michigan states led the nation with highest unemployment rates.

General Motors, Chrysler and Ford Motor are looking for $34 billion bailout from the Congress. Auto workers union is hinting that it is prepared to make concessions for healthcare and retirement benefits and also eliminate job banks.

U.S. Congress is considering establishing an oversight board that monitors how the loaned money will be spent. Lawmakers are encouraged by the Government Accountability Office to negotiate with bond holders, dealers and other vendors and negotiate a broad restructuring and lowers structural costs in the industry.

AT&T Inc ((T)), the largest telephone company announced job cuts of 12,000, nearly 4% of labor force of the company.

November same store retail sales were weaker than expected. Department stores, luxury retailers and electronics stores reported sales decline of between 8% and 16%. Wal-Mart Stores sales rose 3.4%. According to survey of 37 retail chains by International Council of Shopping Centers, same store sales declined 2.7%.

Sales at Gap declined 10%, Sears Holding Corp fell 8.7%, J.C. Penney declined 12% and Nordstrom dropped 16%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 79.86 or 1.00% to 7,924.24, Hang Seng index in Hong Kong decreased 78.88 or 0.58% closed to 13,509.78 CSI 300 index in China higher 30.26 or 1.55% closed to 1,982.93. ASX 200 index in Australia decreased 1.40 or 0.04% to close 3,532.40. The KL Composite index in Malaysia lower 0.67 or 0.08% closed to 846.86.

The Kospi Index in South Korea decreased 16.13 or 1.58% to close at 1,006.54. SET index in Thailand closed lower 0.05 or 0.01% to 392.87 and JSE Index in Indonesia increased 12.80 or 1.07% to 1,205.32. The Sensex index in India increased 482.32 or 5.51% closed to 9,229.75.

Europe Markets Review

In London FTSE 100 Index traded higher 40.10 or 0.96% to 4,210.06, in Paris CAC 40 Index increased 31.60 or 1.00% to 3,198.25 and in Frankfurt DAX index traded higher 82.75 or 1.81% to 4,649.99. In Zurich trading SMI increased 60.11 or 1.07% to 5,664.34.