Dow Drops 165

The Dow dropped 165 points today to 7945, hitting a three-month low (again).

Wall Street took no comfort from news that gross domestic product in the fourth quarter grew at a measly 0.7 percent rate, a number that was lower than the market’s modest expectations of a 0.9 percent advance. Separately, some 397,000 people filed for the first time last week to get unemployment benefits, 12,000 more than economists had expected and dangerously close to the 400,000 level that indicates a weakening labor market. […]

At first, I was a bit confused about the 400,000 threshold for “a weakening labor market”. However, I suppose that’s just an indicator with a generally accepted crossing-point.

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