NEW YORK Stocks began the third quarter with another loss after reports on jobs, housing and manufacturing raised investors' economic worries.
The Dow Jones industrial average fell nearly 42 points Thursday for its sixth straight loss, although it ended well off its lows ahead of the government's June jobs report. The report is critical because a rebound in jobs is needed for the economy to recover. The numbers are due before the start of trading Friday.
Anthony Chan, chief economist at J.P. Morgan Private Wealth Management in New York, said expectations are now so low that the market could get a pop from the report. "So many people are so set up for such a negative number that even if the number shows any signs of life there may be some sort of a relief rally," Chan said.
The latest economic reports followed a bad second quarter for investors and added to the importance of Friday's snapshot of the labor market.
The government said initial claims for unemployment benefits rose by 13,000 last week to 472,000. Economists had forecast a drop in claims. The report comes a day after payroll company ADP said private employers didn't increase hiring as much as expected last month.
Other economic news added to investors' concerns. The National Association of Realtors said the number of buyers who signed contracts to purchase homes fell to a new low in May following a rush of purchases to meet an April 30 tax credit deadline. Meanwhile, the Institute for Supply Management said its manufacturing index fell in June but that industrial activity still appears to be growing.
There were some pockets of strength in the market Thursday. Retail stocks mostly rose after a private equity firm disclosed that it purchased a 9.5 percent stake in BJ's Wholesale Club Inc. with the intention of taking it private. BJ's shares rose 17.6 percent. Limited Brands Inc., parent of the Victoria's Secret and Bath and Body Works chains, rose 2.9 percent after Fitch Ratings raised its ratings on the company's credit.
