Lackluster jobs data tips major indexes downward

A surprisingly poor signal on the jobs market sent stocks slightly lower yesterday as investors remained worried about a lack of hiring.

The modest drop came after the Labor Department said first-time claims for unemployment benefits rose unexpectedly last week.

Investors tried to muster a late-day rally, but there wasn't enough momentum to push the Dow Jones industrial average back into positive territory. Broader indexes also ended lower.

Trading volume on the New York Stock Exchange fell to its second-lowest level of the year as many traders avoid the market altogether.

The nation's high unemployment rate remains one of the biggest worries for investors. Traders will get a stronger reading on the jobs market today when the government releases its closely watched monthly tally of payrolls and the unemployment rate.

"Without job creation, you can't get consumer confidence up and spending up," said Joe Gordon, founder and managing partner of Gordon Asset Management. "People are very cautious."

The Dow fell 5.45 points, or 0.1 percent, to 10,674.98. The Standard & Poor's 500 index fell 1.43, or 0.1 percent, to 1,125.81, while the Nasdaq composite index fell 10.51, or 0.5 percent, to 2,293.06.- AP