copied from http://news.moneycentral.msn.com
Dow, S&P 500 fall as economic reports ignite worries about interest rates; Nasdaq gains thanks to Microsoft.
Stocks stumbled Friday as worries about higher interest rates overshadowed the day's corporate news, including upbeat earnings from Microsoft and Caterpillar, weaker results from Amgen and a Citigroup downgrade of Cisco Systems.
The Dow Jones Industrial average (down 15.54 to 12,487.02, Charts) and the broader S&P 500 (down 1.72 to 1,422.18, Charts) lost 0.1 percent.Stocks zigzagged throughout the week until Thursday when the Dow suffered its worst one-day selloff in two months after a report hinting at a bottoming in the housing market - paired with a spike in Treasury yields - revived worries about higher interest rates.
Investors clung to such worries Friday as a second housing market report suggested a bottoming, this time in new home sales, in addition to a strong December durable goods orders report.
Strong economic growth is good for corporate profits and ultimately leads to stock gains, but investors may be concerned that if growth is too strong it will cause the Federal Reserve to start raising interest rates again.
"People are worried that stronger growth will bring the Fed off the sidelines and drive interest rates higher, at the same time that earnings growth is slowing," said Charles Smith, chief investment officer at Fort Pitt Capital Group.
Stocks stumbled Friday as worries about higher interest rates overshadowed the day's corporate news, including upbeat earnings from Microsoft and Caterpillar, weaker results from Amgen and a Citigroup downgrade of Cisco Systems.
The Dow Jones Industrial average (down 15.54 to 12,487.02, Charts) and the broader S&P 500 (down 1.72 to 1,422.18, Charts) lost 0.1 percent.Stocks zigzagged throughout the week until Thursday when the Dow suffered its worst one-day selloff in two months after a report hinting at a bottoming in the housing market - paired with a spike in Treasury yields - revived worries about higher interest rates.
Investors clung to such worries Friday as a second housing market report suggested a bottoming, this time in new home sales, in addition to a strong December durable goods orders report.
Strong economic growth is good for corporate profits and ultimately leads to stock gains, but investors may be concerned that if growth is too strong it will cause the Federal Reserve to start raising interest rates again.
"People are worried that stronger growth will bring the Fed off the sidelines and drive interest rates higher, at the same time that earnings growth is slowing," said Charles Smith, chief investment officer at Fort Pitt Capital Group.
1 comment:
OMG!!!! im Sooo nevous poor wallstreet i cant believe it its way too SHOCKING!!!!! oh ya you love Franc
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