NewsMine — economy — united-states — 2004 — 2004-oct-nov — Viewing Item

Stocks fall on producer prices report Original Source Link: (May no longer be active)    http://quote.bloomberg.com/apps/news?pid=10000006&sid=amK8baI0zKGo&refer=home http://quote.bloomberg.com/apps/news?pid=10000006&sid=amK8baI0zKGo&refer=home U.S. Stocks Fall on Producer Prices Report; Wal-Mart Declines Nov. 16 (Bloomberg) -- U.S. stocks fell after a government report showed October producer prices jumped more than estimated, spurring concern that the Federal Reserve will raise interest rates at a faster pace than expected. ``Those that think the Fed might not be tightening in December will get a rude awakening with the inflation numbers,'' said Michael Strauss, who helps manage more than $30 billion at Commonfund in Wilton, Connecticut. ``It shows some of the spike we had from energy. Equities will have some indigestion over the number.'' Wal-Mart Stores Inc., the world's largest retailer, declined after the company reported disappointing sales. The Standard & Poor's 500 Index lost 3.88, or 0.3 percent, to 1179.93 as of 9:50 a.m. in New York. The Dow Jones Industrial Average slid 30.30, or 0.3 percent, to 10,519.94. The Nasdaq Composite Index declined 12.25, or 0.6 percent, to 2081.84. U.S. wholesale prices rose 1.7 percent last month, the Labor Department said in Washington, the most since January 1990, led by a surge in energy costs. Economists forecast a 0.6 percent rise in the October index, based on the median of 74 estimates in a Bloomberg News survey. The rise in prices may make it more likely the Fed will lift its benchmark lending rate again next month. Fed policy makers in a statement following their meeting last week said inflation ``and longer-term inflation expectations remain well contained.'' At the meeting they raised their target rate for overnight loans between banks to 2 percent from 1.75 percent, the fourth increase since June. The Labor Department may say in a report tomorrow that U.S. consumer prices accelerated 0.4 percent in October, according to a Bloomberg survey of economists. That would be twice the increase seen in September and the fastest rate since May. Wal-Mart Shares of Wal-Mart shed 89 cents to $56.81. The company missed its forecast for a same-store sales gain of 3 percent to 5 percent in the third quarter. Net income rose 13 percent to $2.29 billion, or 54 cents a share, in the period ended Oct. 31, helped by a tax credit. Wal-Mart and Hewlett-Packard Co., the world's second-largest personal-computer maker, are among eight S&P 500 companies scheduled to report earnings today. Hewlett-Packard's shares slipped 3 cents to $19.39. The company may say fourth-quarter profit excluding some gains and losses rose 2.8 percent to 37 cents a share, based on Thomson Financial estimates. Sales probably rose 7 percent, the smallest gain in more than a year. Earnings last quarter for companies in the S&P 500 Index rose about 17 percent based on the share-weighted average of the 462 companies that released results by Nov. 12. The amount is the smallest increase since the second quarter of 2003. Google Google Inc. fell $6.63 to $178.24. Employees and other insiders at the owner of the world's most-used Internet search engine will be allowed to sell 39.1 million shares today, potentially doubling the amount of stock on the market and putting pressure on the price. Shares of Fannie Mae, the biggest source of U.S. mortgage money, dropped $1.20 to $69. The company's third-quarter profit before gains or losses in financial contracts was $1.86 a share. The average estimate of analysts polled by Thomson Financial was $1.89 a share. The company also missed a Securities and Exchange Commission deadline for filing financial statements. Charter Communications Charter Communications Inc. dropped 31 cents, or 11 percent, to $2.40. The cable-television operator controlled by billionaire Paul Allen said it plans to register with the U.S. Securities and Exchange Commission as many as 150 million Class A shares of its common stock to be sold in a public offering. The company also plans to sell $750 million in convertible notes. JPMorgan Chase & Co. lost 67 cents to $38.49. The second- largest U.S. bank by assets was downgraded to ``market perform'' from ``outperform'' by Piper Jaffray & Co. analyst Andrew Collins. Last Updated: November 16, 2004 09:53 EST

Bush says jobless can go back to school { October 14 2004 } China rate boost may help US Consumer confidence fell seven month low Crude oil falls on speculation inventory gain Dollar and markets dive on greenspan warning { November 20 2004 } Dollar fall pushes gold above 450 { November 26 2004 } Dollar falls to nine year lows { November 4 2004 } Dollar nears record lows bond sink { November 19 2004 } Dollar struggles after stumble Dow and gold up while oil down { November 4 2004 } Economic armageddon predicted { November 23 2004 } Election day gains lost on kerry victory concerns Fears over recovery as walmart sales stall { November 28 2004 } Fed raises rate to 2 percent in november Food stamps in colorado at five year high { August 25 2004 } Gm to close baltimore plant 2005 { November 16 2004 } Gold and stocks go down together Gold heads to 16 year high Gold highest in six months as dollar slides Greenspan playing the fool { October 29 2004 } Greenspan says foreigners may curb financing deficit Imf predicts strong growth Income gap widens and uncertainty spreads { September 20 2004 } Income gap widens more families struggles { September 20 2004 } Interest rate rise by china confuses west { October 29 2004 } Job growth slows raising new concerns { October 9 2004 } Jobs created are minumum wage jobs fastfood no benefits { October 9 2004 } Ranks of areas invisible poor are increasing { October 3 2004 } Retailers usher in holiday season Stocks biggest drop four weeks after oil hike Stocks dip below 10000 mid october { October 13 2004 } Stocks dollar rise as oil drops day before election Stocks fall gold up on high oil prices { October 9 2004 } Stocks fall on producer prices report Stocks fly after bush win Stocks rally 6 days before election { May 12 2003 } Stocks rally big 7 days before election Stocks sent sliding on rash of bad news { October 23 2004 } Trade deficit second biggest ever Trade gap narrows on falling dollar Treasuries slip flustered by inflation scare US isnt concerned about dollar record falls US job growth weaker than expected US jobless rose 20 thousand to 350 thousand Files Listed: 44

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