Stocks slip on auto concerns
Investors edgy about auto bailout bill's chances for Senate passage and surge in jobless claims.
NEW YORK (CNNMoney.com) -- Stocks slipped Thursday morning as investors waited to see if a $14 billion auto industry bailout will get Senate approval.
Investors also considered the morning's economic news, including a report that showed weekly jobless claims reached another 26-year high and a wider-than-expected October trade deficit.
The Dow Jones industrial average (INDU) lost 1.3%. The Standard & Poor's 500 (SPX) index gained 1.2% and the Nasdaq composite (COMP) gained 1.5%.
"When you have indecision, you have volatility, so that's what you're seeing," said Anthony Conroy, head trader at BNY Brokerage, referring to uncertainty over the bailout's approval and who will be appointed to monitor it.
Big Three bailout: The House passed a stopgap $14 billion bailout for U.S. automakers Wednesday evening. The bill would provide loans to keep GM (GM, Fortune 500) and Chrysler out of bankruptcy.
The measure passed by a count of 237 to 170. But Republican opposition in the Senate could threaten the chances of the bill's approval.
Robert Brusca, chief economist at Fact and Opinion Economics, dismissed concerns over the Senate blocking the bailout, because senators wouldn't want to risk the economic repercussions of allowing it to fail.
"Concerns began to arise about the Senate, but I have to believe that it's more of a PR (public relations) thing than a real attempt to block it," said Brusca. "If you're going to block it, you're going to create more problems."
Economy: The Labor Department reported that 573,000 initial claims for unemployment benefits were filed in the week ended Dec. 6.
This was much worse than the 525,000 jobless claims that were projected, according to a consensus of expectations compiled by Briefing.com.
In addition, Stanley Works (SWK), a tool maker based in New Britain, Conn., said it would eliminate 2,000 workers, or 10% of its work force, and close three factories because of "rapidly deteriorating business conditions" in the construction and industrial sectors.
Last week, the Labor Department reported that the U.S. lost about 1.9 million jobs through November of this year.
The Commerce Department said that the October trade balance was a deficit of $57.2 billion, which was down from the revised $56.6 billion deficit in September. It was worse than the $53.5 billion expected by economists, according to a consensus of projections compiled by Briefing.com.
Companies: The deal to take Canadian telecoms company BCE (BCE) private has collapsed after an audit found the proposed $35 billion buyout did not meet solvency requirements.
Yahoo (YHOO, Fortune 500) has overhauled a severance program that could have saddled potential buyers with a huge bill after a takeover. The move could make it easier to negotiate a sale of the company.
World markets: In Asia, shares in Hong Kong and Tokyo advanced. Major European indexes were mixed in morning trading.
Oil and currencies: Oil prices jumped $2.24 a barrel to $45.76 on the New York Mercantile Exchange. The dollar fell against a wide spectrum of international currencies, including the yen, the euro and the British pound. 
