Dartline™ … Closing Thoughts.

February 4, 2010, 4:00 pm EST … Closing Thoughts .. The Standard & Poor’s 500 index closed down 34.18 to 1063.11, as bad news, including rising debt levels in European nations and an unexpected jump in the number of Americans filing for unemployment benefits, had traders jumping from buildings. The drop was similar to stumbles the market began having in mid-January. Stocks fell then in response to China’s attempts to curb its overheated growth. Those moves raised fears that the other world economies could suffer as a result. The pullback in stocks worsened as leaders in Washington said they would impose tighter regulations on U.S. banks. U.S. trading also was affected by European markets, which dropped on concerns about onerous debt levels in countries including Greece, Spain and Portugal. The euro hit a seven-month low against the dollar on the news. The rising dollar hurt demand for commodities, which are priced in dollars and become more expensive to foreign buyers when the dollar climbs. Britain’s FTSE 100 dropped 2.2 percent, Germany’s DAX index slid 2.5 percent, and France’s CAC-40 lost 2.8 percent. Japan’s Nikkei stock average fell 0.5 percent. … The Labor Department said Thursday that claims for unemployment benefits rose by 8,000 to 480,000 last week. The news disappointed investors who had hoped for a drop. It was the fourth increase in the past five weeks. The jobless claims numbers chilled expectations that the government’s January jobs report, due Friday, would show that employers added workers in the first month of the year. Analysts currently expect Friday report to show that employers added 5,000 jobs in January. The government is also expected to report that the unemployment rate ticked up to 10.1 percent from 10 percent. … Gold futures fell sharply along with other metals and commodities, as concerns about economic growth and debt woes in Europe fueled a rally in the dollar. Gold for April delivery slumped $49, or 4.4%, to finish at $1,063 an ounce at the New York Mercantile Exchange. Among other metals, copper for March delivery fell 9.3 cents, or 3.1%, to end at $2.88 a pound. .. The Chicago Board Options Exchange’s Volatility Index jumped 17 percent. An increase in the VIX, which is known as the market’s fear gauge, is a sign that investors predict more big moves in stocks.