Grim employment numbers stoke investor fears of double dip recession

This morning's report that unemployment has hit 9.8 percent makes it clear that even if we are coming out of a recession, the economy is not creating new jobs. Economists expected that the number of jobs lost in September would total 180,000, and at at 263,000 the actual number was 46 percent higher. As I wrote earlier, an economic recovery could be threatened by rising unemployment, and it looks like investors are beginning to react to that threat.

First, a quick look at how the stock market has behaved in the last few days suggests that investors are taking money off the table to lock in profits. Since the Dow peaked near 9,900 on September 23, it has lost almost four percent of its value. And yesterday's 200-plus point tumble was pretty stomach-churning. I don't know why the market moves up and down from day to day, but lately a growing fear of a double dip recession could be a contributing factor.