AP
Business Highlights
Thursday November 6, 7:09 pm ET

Stocks tumble, lose 10 percent in 2-day rout

NEW YORK (AP) -- Wall Street plunged for a second day, triggered by computer gear maker Cisco Systems warning of slumping demand and retailers reporting weak sales for October. Concerns about widespread economic weakness sent the major stock indexes down more than 4 percent Thursday, including the Dow Jones industrial average, which tumbled more than 440 points to 8,695.79 after falling as much as 502 in the final five minutes of trading.

Major indexes have lost about 10 percent since Barack Obama was elected president -- a vote preceded by a steep rally -- and the losses represent the Dow's worst two-day percentage decline since the October 1987 crash.

Longer-term jobless benefits hit 25-year high

WASHINGTON (AP) -- The number of out-of-work Americans drawing unemployment benefits has surged to a 25-year high, while shoppers turned extra frugal, further proof of the damage from sinking economy, credit problems and financial stresses.

The Labor Department reported Thursday that the number of people continuing to draw unemployment benefits jumped by 122,000 to 3.84 million in late October, well above analysts' estimates of 3.74 million. That was the highest level since late February 1983, when the country was struggling to recover from a long and painful recession. The year-ago tally was 2.59 million people.

Detroit seeks Congress aid on retiree health care

WASHINGTON (AP) -- The leaders of General Motors, Ford, Chrysler and the president of the United Auto Workers union came to Capitol Hill Thursday to discuss billions of dollars more in financial help for the companies, which have struggled under a weakened economy.

House Speaker Nancy Pelosi was meeting with the chief executives of Detroit's automakers to hear their expected plea for an additional $25 billion in federal loans for future health care payments for retirees. The executives also plan to seek help in accessing money from the Treasury Department or the Federal Reserve.

European banks cut rates as recession looms

LONDON (AP) -- The Bank of England slashed its key interest rate by 1.5 percentage points Thursday to its lowest in more than 50 years in a dramatic bid to cushion the coming recession, while the European Central Bank settled for a more conservative half-point trim.

The British central bank's move to bring the base rate down to 3 percent -- the biggest single day cut in 27 years -- caught markets by surprise, and economists were divided over whether it was a bold pre-emptive step, or simply a sign that the bank had waited too long to address the crisis.

The last time Britain's benchmark rate was at 3 percent was early 1955, when Winston Churchill was still prime minister.

Holiday outlook turns grimmer after dismal October

NEW YORK (AP) -- Retailers suffered through the weakest October in at least 39 years, despite frenzied price cutting as they desperately try to pull in consumers who are too worried about their finances to shop.

The sales tallies from major retailers on Thursday -- many showing declines of 10 percent or more -- suggests that shoppers will remain skittish through the holiday season, buying presents for children but not much else.

Oil prices near $60 on recession fears

HOUSTON (AP) -- Oil prices fell 7 percent, or $4.53, to settle at $60.77 a barrel Thursday, their lowest point in about a year and a half, as a growing number of economic reports point to a long and painful recession.

When the economy slows, the demand for energy fades. The price of gasoline has tumbled from summer highs, when a gallon cost more than $4. Experts say gasoline could cost half that by year's end.

Prices tumbled as low as $60.16 at one point, a level last seen in March 2007.

Fidelity to cut nearly 1,300 jobs

BOSTON (AP) -- Fidelity Investments said Thursday it will cut nearly 1,300 jobs this month, with more layoffs to come early next year, in response to declining markets that have eroded mutual fund assets along with the fees Fidelity earns from its core business.

Layoff notices will go out to about 2.9 percent of Fidelity's overall work force of 44,400. The cuts will be spread across the company's far-flung U.S. operations, affecting management positions as well as lower-level jobs, and no fund managers or analysts are being laid off.

A second round of layoffs is planned in the first three months of next year, with the number of those cuts and other details to be released in coming weeks.

Express Scripts receives extortion threat

WASHINGTON (AP) -- Express Scripts said Thursday it has received a letter demanding money from the company under the threat of exposing records of millions of patients.

The threat was made in an anonymous letter that the company turned over to federal investigators. The letter, received in early October, included personal information on 75 people covered by Express Scripts, including birth dates, social security numbers and prescription information.

Express manages prescription benefits for roughly 50 million people through thousands of clients, including health insurers, employers and union-sponsored plans.

Dana to cut more jobs, close plants as loss widens

NEW YORK (AP) -- Dana Holding Corp. said Thursday it will close up to 10 plants and cut 2,000 more employees than originally planned as the auto parts maker's net loss widened in the third quarter.

The company said its loss available to common stockholders widened to $279 million, or $2.79 per share, from $69 million, or 46 cents per share, in the year-earlier period. Sales for the quarter ended Sept. 30 fell 9 percent to $1.93 billion from $2.13 billion.

Toy maker Mattel to cut 1,000 jobs worldwide

NEW YORK (AP) -- Mattel Inc. said Thursday it is cutting about 1,000 positions worldwide because of the economic downturn that is clouding the holiday outlook for toy makers.

Mattel, which makes Barbie, American Girl and Fisher Price products, among others, said the positions amount to 3 percent of its worldwide work force and will reduce its professional and management staff by 8 percent.

The company said the cuts will come from a combination of layoffs, attrition and retirements and will not affect holiday toy production.

By The Associated Press

The Dow fell 443.48, or 4.85 percent, to 8,695.79.

Broader stock indicators also posted sharp losses. The Standard & Poor's 500 index fell 47.89, or 5.03 percent, to 904.88, and the Nasdaq composite index fell 72.94, or 4.34 percent, to 1,608.70.

Light, sweet crude for December delivery fell 7 percent, or $4.53, to settle at $60.77 a barrel on the New York Mercantile Exchange.

In other Nymex trading, gasoline futures fell 8.8 cents to settle at $1.336 a gallon. Heating oil dropped 11 cents to settle at $1.942 a gallon while natural gas for December delivery fell 27 cents to setttle at $6.979 per 1,000 cubic feet.

In London, December Brent crude fell $4.44 to settle at $57.43 on the ICE Futures exchange.