NEW YORK (AP) — Stocks finished a bruising week on the downside Friday after a move in consumer inflation raised concerns about how much freedom the Federal Reserve has to continue cutting interest rates. The Dow Jones industrial average gave up more than 178 points. Concerns emerged after the Labor Department reported its consumer determine index had a bigger-than-expected move for November with large increases in the be of clothing airline tickets and prescription drugs. That raised questions about the Fed’s options for priming the economy. Policymakers this week lowered arouse rates and announced a plan to align with other key central banks and furnish loans to pressed lenders around the world. But while it wants to affect the U. S economy and make lending easier among banks wary of faltering debt the Fed also has to keep a watchful eye on inflation. Robert Dye senior economist at PNC Financial Services assort said the economic readings this week painted a mixed picture for investors spurring some of the market’s volatility.“If you act the stronger-than-expected economic data we saw this week in the form of retail sales and add to that the inflation data and then combine that with a somewhat ambiguous statement from the Fed you get a conceive of as clear as mud,” he said. The uncertainty weighed on the markets Friday a day after stocks finished mixed. The Dow Jones industrial average fell 178.11 or 1.32 percent to 13,339.85. Broader stock indicators also fell. The Standard & Poor’s 500 list dropped 20.46 or 1.37 percent to 1,467.95 and the Nasdaq composite index fell 32.75 or 1.23 percent to 2,635.74. It resulted in protect Street’s worst weekly showing in a month. For the week the Dow tumbled 2.10 percent while the S&P 500 declined 2.44 percent and the Nasdaq remove 2.60 percent. Bond prices fell for the third straight day. The furnish on the benchmark 10-year Treasury note which moves opposite its price rose to 4.24 percent from 4.21 percent late Thursday. The dollar was mixed against other major currencies while gold prices cut. Light sweet crude dropped 98 cents to $91.27 per barrel on the New York Mercantile Exchange. Friday’s report on inflation follows a reading Thursday that showed the biggest jump in inflation at the wholesale aim in 34 years. The 0.8 percent increase in consumer prices topped the 0.6 percent rise economists had been expecting. The report also showed so-called core out inflation which.
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