August 26th, 2010
09:34 PM ET

GDP fears help push stocks lower

A look at highlights from the day's business news:

Stocks slip as recovery worries return

Stocks slipped Thursday, erasing earlier gains as worries about a sputtering economy overshadowed a better-than-expected report on jobless claims.

The Dow Jones industrial average lost 74 points, or 0.7 percent, the Nasdaq composite fell 23 points, or 1 percent, and the S&P 500 ticked down 8 points, or 0.8 percent.

An earlier bounce lost steam as investors turned their focus to the economy, bracing for the latest reading on second-quarter gross domestic product due early Friday. GDP, the broadest gauge of economic activity, is expected to show the economy grew much less than previously estimated.

Treasury yields hold near 19-month lows

Treasurys yields fell Thursday after the government sold $29 billion in seven-year notes one day before a key report on U.S. economic growth and a highly anticipated speech by the chairman of the Federal Reserve.

The benchmark 10-year note yielded 2.49 percent at 4 p.m. ET in New York. That's down slightly from 2.54 percent late Wednesday and near the lowest level since January 2009.

The yield on the two-year note was 0.52 percent, close to an all-time low, while
the five-year yield slid to 1.38 percent. The yield on the 30-year bond fell to 3.52 percent from 3.57 percent.

Treasury yields rose modestly earlier in the day after a better-than-expected data on weekly jobless claims helped ease concerns about the economy. But the positive sentiment faded in the afternoon as investors braced for the latest reading on the nation's economic growth and a statement from Fed chief Ben Bernanke on Friday.

- CNNMoney.com reporters Blake Ellis and Ben Rooney contributed to this report.

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Filed under: Economy
soundoff (3 Responses)
  1. DL13

    And the President deals with it by more blaming of Bush, spending more money that we don't have, and going on vacation.

    August 26, 2010 at 11:03 pm | Report abuse |
  2. Michael

    I agree with DL13. I think that the press is responsible for people holding on to their money at this point. All the talk of a double dip recession is going to be a self fulfilling prophesy.

    August 26, 2010 at 11:41 pm | Report abuse |
  3. Tired of the BS

    Holding on to WHAT money? It takes everything I have just to get by. I know many people just like myself. Geesh, I wish I had money to hold on to! I thought O'bambi was going to make things better.

    August 27, 2010 at 12:03 pm | Report abuse |