Midday Dow at 12,024, down 81 points. Oil at $99.77 today.
NEW YORK (AP) — Stocks fell for the third straight day Wednesday
as surging oil prices overshadowed signs of an improving job
market.
Oil prices neared $100 a barrel as clashes in Libya intensified
between forces loyal to Moammar Gadhafi and anti-government
protesters. Rebels control much of the eastern part of the country,
effectively splitting Libya into two.
Libya is the world’s 15th largest exporter of crude, accounting for
2 percent of global daily output. Traders are worried the revolt
could threaten Libya’s oil production and spread to other countries
in the region, such as oil-rich Saudi Arabia. Higher oil prices can
also slow the U.S. economy by increasing transportation costs.
The Dow Jones industrial average fell 79 points, or 0.7 percent, to
12,026. The Standard & Poor’s 500 index fell 7, or 0.5 percent, to
1,300. The Nasdaq composite fell 3, or 0.1 percent, to 2,719.
The Labor Department said fewer people applied for unemployment
benefits last week, a sign that the job market is recovering. The
four-week average for applications, a figure closely watched by
financial analysts, fell to its lowest level in more than two and a
half years. The Commerce Department said sales of new homes fell
significantly in January, another sign that the housing industry is
still struggling
Several companies rose after announcing better than expected
earnings.
