Midday Market Update: Unemployment Socks Wall Street | ETF Trends

Stocks and exchange traded funds (ETFs) are dipping into negative territory on a worse-than-expected jobs report that has dampened hopes for a strong recovery by year-end.

The national unemployment rate has jumped to 9.8%. The rising numbers are putting pressure on Congress to give additional unemployment benefits, as well as extend some programs that were scheduled to expire by the end of the year, reports Jack Healey for The New York Times.

The news about jobs sent oil prices lower, to $69.68 a barrel. The jobless numbers are fueling doubts about the economic recovery and its strength. United States Oil (NYSEArca: USO) was trading more than 1% lower this morning.

Factory orders declined unexpectedly in August by the largest amount in five months, reports Martin Crutsinger for the Associated Press. Demand dropped by 0.8%, worse than the 0.7% gain economists had expected. The drop was in part because of declining commercial aircraft demand.

Bank of America has given the go-ahead for a dividend payment of $713 million on preferred stock issued to the Treasury Department. The deal was part of the government’s bank rescue program last year, reports the Associated Press. PowerShares Financial Preferred (NYSEArca: PGF) is down more than 1.25% this morning.

For more stories on energy, visit our energy category.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.