Retail sales unexpectedly rose in January – halting a record six-month skid – but the upbeat report could easily be a one-month wonder, since U.S. unemployment continues to climb.

Job Claims Hit 42-Year High; Dodd’s Vengeance; Durable Goods Orders Slowing Slide; 3Com Profit Down but Stock Up; Amazon Profit Up 9%; Crude Prices Down as Inventories Build; Kodak Paints Unflattering Picture

“U.S. Leading Indicators Index Fell 0.4% in November” said Bloomberg.com, and then it was qualified with the comment that the fall of the Leading Indicator “for the fifth time in seven months” was merely “reflecting the worsening outlook that led the Federal Reserve to slash interest rates and pledge unlimited purchases of securities.”

Gold rose in the far East, peaking at $890 in early Hong Kong trading, fell back to $875 by the close of the Comex, but rallied through the Globex to finish at $880.60/oz., up $11.90. Overnight, gold has dropped off.

Job market takes another turn for the worse… unemployment data at 26-year high… Government solution:spend… budget and trade deficits swell more than expected… Byron King on falling oil demand… and what it means for long-term investors… Gold soars… Ed Bugos with some fresh price targets… Signs of the times… Chinese bank opens in U.S., world’s biggest LBO collapses… Plus, Chris Mayer on the automaker bailout

Another currency rally….  SNB cuts another 50 BPS!  Budget Deficit continues to widen!  Treasury yields go south for the winter! And Now… Today’s Pfennig!

The S&P 500 Index (.INX) opened today at 795. That’s the first time the index has been below 800 since April 1997. Eleven years of stock gains have vanished.

Wall Street headed lower today as investors digested a jump in weekly first-time jobless claims ahead of Friday’s much-anticipated employment report.

Mr Market may also be spooked by Fed chief Ben Bernanke’s second day on Capitol Hill, where he is testifying about the Fed’s recent bailout of Bear Stearns.

The Dow Jones industrials fell 57.97 points to 12,547.86, with the broader S&P 500 declined 5.54 points to 1,361.99.

Read on at Dow Jones MarketWatch. 

US first-time jobless claims for the week ending March 29 rose by 38,000 to 407,000, the highest level since mid-September 2005.

The news that first-time claims have jumped above 400,000 comes on the eve of closely-watched key data on employment.