Retail sales slump kills short-lived U.S. market rebound

“U.S. stocks slid on Friday after a record slump in retailers’ sales last month heightened concerns about a protracted economic downturn and an ailing consumer appetite,” Leah Schnurr reports for Reuters.

“Stocks were unable to follow up on Thursday’s dramatic rebound after the S&P 500 and Nasdaq touched fresh five-year lows as analysts said worries over how deep the slowdown could be remained in the forefront,” Schnurr reports.

“A Commerce Department report showed retail sales dropped 2. 8 percent in October as consumers curbed their spending amid recession fears, but part of the drop was due to falling gas prices. The ability for the consumer to keep spending is at the heart of economic activity and consumer profits,” Schnurr reports.

“On the Nasdaq, Sun Microsystems was up 4.4 percent at $4.26 after the computer maker said it will slash as many as 6,000 jobs to mitigate the impact of faltering global demand,” Schnurr reports. “Cellphone maker Nokia warned about its outlook, which weighed on technology shares. Apple was the biggest drag on the Nasdaq, falling 5 percent to $91.60.”

Full article here.

12 Comments

  1. As The Second Coming, while I appoint Hillary Clinton as Secretary of State and Rahm Emanuel as Chief of Staff in the name of “Change” and prepare to rule, I can say unequivocally that we need to raise taxes in order to get more money to spread around amongst government programs and bailouts present and future.

    This I say to you because I am (half) black and I have the power to assuage white guilt (at least 50%) and because the mainstream media hath anointed me Jesus, The Son of God.

  2. Sun Microsystems, Dell, Nokia, … are are laying off people because Apple is crushing them.

    When a wolf kills of a struggling deer is it bad for the wolf?

    Of coarse Apple’s competition is going to have problems. Did music CDs do better when iPods and iTunes dominated the market. That is evidence of Apple’s success!

  3. @Jersey_Trader

    Some of what you said is true but you have to remember that a wolf sometimes maims and kills for fun. That may not sit well with some animal lovers but it’s true. That may also be on the mind of his stevieness for the sell and give the money back comment by dell boy.

  4. Only Obama and his left-wing nut jobs could ever imagine raising taxes on America’s workers and giving money to those who do not pay taxes would improve the economic well-being of the nation.

    2010 cannot arrive soon enough.

  5. I think I’ll avoid these hit-whoring articles from now on.

    What the fuck does this shit have to do with the Mac or Apple?

    Just muckraking crap for the armchair political morons that pollute these forums and this site like a toilet full of beer gravy. Enjoy the ad revenue.

  6. Love how quickly people forget the “rich” pay over 90% of all tax receipts, and are the people who employ all us middle-class “poor” people. Oh, yeah, and its those same people who have the means to move their money AND businesses overseas to avoid paying the taxes that are going up on them, which will, oh I dunno…..put MORE middle-class out of work which will then in turn cause a drop in government tax receipts……

    Have Americans forgot the concept of a vicious-cycle? Or maybe now they have “change” and “hope” more people will just enjoy circling the drain…….

  7. The ‘rich’ in the USA do not pay over 90% of all taxes. Of course that would depend on how u define rich. The reality is that there are not enough ‘rich’ people to pay. The middle class, a far larger group, pay a greater percentage of their income into taxes, and as there are so much more of them than the really rich, they also pay the lion’s share of all taxes collected.
    So what income level do you define as rich? the top 1%? 10 %? and if this 1%, for example, pay a higher tax rate than the bottom 50% (rate, not dollars), what of it? They are not seriously harmed, as they have more than enough cash left to feed and house themselves. What percent of their income is used for that, as compared to a family of four with pre-tax income of 40,000. The fact is that taxation will never be applied equally. And notice that i said equally, not fairly, as taxation in and of itself is often not fair. But it exists to allow a government to provide services to its citizens. The number of Americans i have heard bitch about their taxes being too high, followed by a rant on crappy roads and schools, is amazing. One pays for the other, if u do not like how it is spent, vote for leaders that will tackle those issues. If u want nice roads, schools etc. be prepared to pay for them, and clam up.

    Back to your original point, the rich do not pay over 90% of taxes collected, unless u are being very loosey-goosey on defining ‘rich’ as in ‘every bastard that makes more than me’. They might pay a lot of actual dollars, even as a percent of income, however, there are a lot more making less than 100,000 grand a year, then there are making more. The sliding scale of percentages for collection of income tax, reflects the fact that lower incomes pay more (as a percent of their income) for food and housing than do the wealthy, super wealthy and even the upper middle class groups, Not all income is even taxed the same. Rates paid for job income are different than income from investments etc., and while it is possible that investments may contribute to the overall national economy, this is by no means guaranteed. Flat tax proponents leave out this detail, talking only about job income, not other sorts. Income is income, regardless of source. If a nation elects to tax income from investments, for example, at a reduced rate due to possible economic benefits, than the investment should be in things that benefit the nation, not a foreign country, or just the investor. But wait, wouldn’t that be socialism,the other great rallying cry of American cry-babies?
    As for tax cuts, where are all the benefits of the Bush tax cut for the super rich (his ‘base’ after all). Not evident in the economy that is for sure. Unless u are selling high power boats and cars.
    A nation shows it’s maturity in how it cares for the less fortunate of its citizens. Many in the USA carry on as if it is ‘their own fault’ that the poor are poor. It may be true, or it may not be. But as a nation, which is justified in being proud of its achievements, it is time to grow up and stop acting like a spoiled teenager. For example, most Western industrialized countries provide health care to all citizens, the USA being the one glaring exception. Yet the USA is the one that already spends more of its GDP (as a percentage) on healthcare than other countries (even limiting it to the G7), and yet not all citizens are covered, and in some areas, the USA lags behind many other countries in outcomes, (example: infant mortality rates), There are poorer countries with better results in health care outcomes. Most citizens (certainly of Western nations) now regard universal health care as a basic right of citizenship. You may choose to disagree, and certainly if you are wealthy enough in the US your care is excellent, but the fact remains that a mature wealthy nation recognizes that the health and well being of its citizens is one of its duties. What would health care costs be in the USA if there were not large corporations making a profit on fixing your kid’s broken arm? If you are waiting for this in an ER, and wonder what is taking so long, it is likely all the non-insured people using the ER as their family doctor. Which you are paying for anyway, socialized medicine or not. It boggles my mind how arguably the richest nation in the world, cannot or will not, take care of the needs of all of its citizens, medically at least. To most of the rest of the world, it is a sign of maturity in nationhood. Lord knows , looking after the less fortunate is a very Christian thing to do. And there seem to be a lot of THEM in the USA. Perhaps they are the only on Sunday kind.

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