* US data shows hiring by employers remains weak
* Central bankers gathering in Jackson Hole
* Focus turns to Friday's revised GDP number
* Stocks down: Dow 0.7 pct, S&P 0.8 pct, Nasdaq 1.1 pct
* For up-to-the-minute market news see []
(Updates to close)
By Leah Schnurr
NEW YORK, Aug 26 (Reuters) - U.S. stocks sagged on Thursday
and the Dow closed below 10,000 a day ahead of an expected
downward revision in U.S. second-quarter economic growth and a
major speech by Federal Reserve Chairman Ben Bernanke.
Major technology shares were among the biggest losers, with
the Nasdaq falling more than the Dow and S&P 500. Tech shares
have been seen as a proxy for economic growth. Cisco Systems
<CSCO.O> fell 2.4 percent to $20.70, while Intel <INTC.O> gave
up 1.6 percent at $18.18.
Stocks initially rose on data showing first-time claims for
jobless benefits fell more than expected last week, but the
number was still too high to signal a shift in the weak labor
market. The four-week average of new claims, regarded as a
better gauge of trends, rose to the highest since late
November. For details, see []
"The best the bull can say is that the recovery is evening
itself out now, it's not accelerating any more," said Linda
Duessel, market strategist at Federated Investors in
Pittsburgh.
"We think it's a soft patch and not a double dip, but the
market is pricing more and more for a double dip, so you're
vulnerable to the upside."
The Dow Jones industrial average <> fell 74.25 points,
or 0.74 percent, to 9,985.81. The Standard & Poor's 500 Index
<.SPX> shed 8.11 points, or 0.77 percent, to 1,047.22. The
Nasdaq Composite Index <> lost 22.85 points, or 1.07
percent, to 2,118.69.
It was the first time the Dow has closed below the
psychologically important 10,000 level since July 6. The market
then began a rebound and logged seven straight days of gains.
In his speech on Friday Bernanke is likely to discuss the
uncertain prospects for the economy but isn't expected to give
many clues about whether the U.S. central bank will pump more
cash into the economy to keep the recovery going.
Bernanke and central bankers from around the world are
gathering for their annual meeting in Jackson Hole, Wyoming,
with the agenda expected to include a discussion of printing
yet more money to spur growth. []
After a recent spate of poor economic numbers, there were
jitters the GDP data could show the economy is weaker than
originally thought. The government's preliminary reading is
expected to come in at 1.4 percent, down from 2.4 percent
estimated a month ago. Estimates range broadly from 0.9 percent
to 2.2 percent, according to a Reuters poll. []
On the technical picture, investors were still looking for
the 1,040 level on the S&P to act as support. Some consider a
dip below that level to be a buying opportunity, as was seen on
Wednesday when the index briefly fell below it.
In deal news, Dell Inc <DELL.O> raised its bid for data
storage company 3PAR Inc <PAR.N> to $1.6 billion, offering
slightly more than bigger rival Hewlett-Packard Co <HPQ.N>.
HP came back with a revised proposal after the closing
bell, sending 3PAR's shares up 7.2 percent to $27.90 in
extended-hours trading. Shares of 3PAR closed at $26.76. HP
closed down 0.1 percent at $38.22, while Dell ended down 0.3
percent to $11.75
A drop in shares of coal companies weighed on the energy
sector for a second day as the price of natural gas fell,
raising concerns that power plants would switch to gas from
coal. Massey Energy <MEE.N> fell 4.2 percent to $27.93, while
the S&P energy sector <.GSPE> fell 1 percent.
(Reporting by Leah Schnurr; Editing by Kenneth Barry)
