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Title: Did someone say recession?
Source:
AP
URL Source: http://www.breitbart.com/article.php?id=D8SL35K00&show_article=1
Published: Nov 1, 2007
Author: JOE BEL BRUNO
Post Date: 2007-11-01 20:33:36 by TLBSHOW
Keywords: recession, oil, economy
Views: 252
Comments: 2
NEW YORK (AP) - Wall Street plunged Thursday, pulling the Dow Jones industrial average down more than 360 points as investors found themselves confronted by two uncomfortable prospects: an end to interest rate cuts and a slowing economy. Mindful of a warning from the Federal Reserve Wednesday about inflation, the market nervously watched the price of oil, which passed $96 a barrel overnight for the first time before dipping on profit- taking. The Fed, which cut interest rates a quarter point, said in a statement that inflation remained a concern, and oil's ascent to another record raised the possibility not only that the Fed might stop cutting rates, but that it might even consider raising them if inflation accelerates. Meanwhile, Wall Street also had to contend with concerns about a slowing economy. A report from the Commerce Department indicated consumers scaled back their spending in September as worries mounted about a worsening housing market and further credit market turmoil. And a trade group reported that manufacturing in the U.S. grew in October at the weakest pace since March. The combination of factors led investors to pull back sharply from Wednesday's rally, in which the Dow climbed 137 points after the Fed said the economy had weathered the summer's credit crisis. "Wall Street is in love with the idea of a rate cut, and realized that the Fed said inflation is still a concern—that lowered the chances of a cut in December," said Ryan Detrick, a senior technical strategist with Schaeffer's Investment Research. "We're now feeling the pain now that investors have slept on it, and figured out what they said." Christopher Cordaro, chief investment officer at RegentAtlantic Capital, said Wall Street remains anxious about the possibility of recession. He also believes the market is devoid of enough positive news "to have any type of sustained rally." Investors were unswayed when the Fed pumped $41 billion into the U.S. financial system, one of its largest cash infusions since the credit crisis began in the summer. This increases the amount of money banks have to lend, and helps improve liquidity. In the past, such an action helped soothe the market, but that was not the case Thursday. With the market growing pessimistic about the economy, the Labor Department's report on October jobs creation, scheduled to be released Friday morning, will be taking on even more importance than it usually has.
Poster Comment: recession 1. The act of withdrawing or going back. 2. An extended decline in general business activity
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#1. To: TLBSHOW (#0)
Pay Mertz.
I worked for a Brit today. He told me that we shouldn't complain about the price of Gas. I wasn't complaining by the way. He said it is about 8 bucks a gallon over there. Ouch
Whatcha Lookin' At, Butthead
#2. To: TLBSHOW (#0)
the market nervously watched the price of oil, which passed $96 a barrel overnight
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