NewsMine — economy — united-states — 2004 — 2004-june-aug — Viewing Item

Dow sinks to 2004 lows on oil prices hp earnings Original Source Link: (May no longer be active)    http://www.mercurynews.com/mld/mercurynews/business/technology/9385521.htm http://www.mercurynews.com/mld/mercurynews/business/technology/9385521.htm Posted on Thu, Aug. 12, 2004 Rising oil prices, disappointing HP earnings sink Nasdaq, Dow to 2004 lows Mercury News Wire Services Rising crude-oil prices and disappointing earnings from Hewlett-Packard sent stocks plummeting Thursday, with the Nasdaq and other major market indexes reaching new year-to-date lows. Crude surged past the $45-a-barrel mark, trading at $45.50, up 70 cents, on the New York Mercantile Exchange. That raised concerns that the Federal Reserve, which raised its key interest rates 1.5 percent Tuesday, would have to be aggressive in further rate increases to combat inflation -- at the same time that earnings growth and the economy is slowing down. ``In the short term, oil is the problem,'' said Barry Savitz, a trader at Greenwich Prime Trading Group in Greenwich, Conn. ``It makes people close their pocketbooks. It's a big fear factor that can go on longer than we think.'' Hit hard by HP's earnings and other tech profit warnings, the Nasdaq composite index was down 29.93, or 1.7 percent, at 1,752.49. It was the Nasdaq's lowest close since Aug. 18, 2003. The Dow Jones industrial average fell 123.73, or 1.2 percent, to 9,814.59. It was the third triple-digit drop in the Dow in the past six sessions, and broke through the 2004 low set Monday. It was the lowest close on the Dow since Nov. 28. The Standard & Poor's 500 index dropped 12.56, or 1.2 percent, to 1,063.23, its lowest finish since Dec. 10. Palo Alto computer maker HP, a Dow component, missed analysts' earnings estimates by 7 cents a share. Its stock plunged $2.57, or 13.2 percent, to $16.95. Santa Clara chip maker Intel also weighed on the Dow and the Nasdaq, declining 92 cents, or 4.2 percent, to $21.24. Closely watched retailers Wal-Mart Stores and Target both released earnings Thursday that beat Wall Street estimates. Wal-Mart, which earned a penny a share more than expected, said it was concerned about increased shipping prices due to fuel costs, but gave an otherwise upbeat assessment. Wal-Mart rose $1.02 to $52.65. Target gained $1.48 to $41.90 after it also surpassed estimates by a penny a share before one-time charges and benefits. The sale of its Marshall Field's stores to May Department Stores helped to nearly quadruple its profit for the quarter. In the currency market, the dollar was down 0.2 percent against Europe's shared currency, with the euro valued at $1.2241. The dollar was up 0.1 percent at 110.89 Japanese yen. Treasury prices climbed into positive territory to close firmly higher on robust appetite at the government's final debt auction of the week. The benchmark 10-year note was up 3/16, or $1.88 per $1,000 in face value. The yield was 4.25 percent, down from 4.27 percent Wednesday. In the commodities market, gold fell for a third straight day. December gold futures closed down $1.30 at $396.60 an ounce on the New York Mercantile Exchange, losing $6.40 over the three-day period. -------------------------------------------------------------------------------- The Associated Press, CBS MarketWatch, Bloomberg News and Dow Jones contributed to this report.

Att profit plummets stops residential service Consumer prices gain at slower pace in june { July 17 2004 } Consumer prices rise in may Consumer spending wanes and growth slows Defense spending helps small town jobs { May 11 2004 } Dollar declines against euro Dollar falls 3 week low versus euro Dow falls below 10k level Dow sinks to 2004 lows on oil prices hp earnings Dow strumbles on growth fears { July 24 2004 } Employment growth surprisingly weak in july { August 6 2004 } Fed boosts rate a quarter point Fed raises rates in august First quarter economic growth slows Food fuel advance consumer prices in may GM and Ford suffer sharp fall in June sales { July 1 2004 } Gold to hold above 400 this year and next { July 19 2004 } Greenspan says fed ready to act on inflation { June 8 2004 } Hourly pay not keeping up with price rises { July 18 2004 } Inflationary pressures building Price index higher than expected Report says 9 perc layoffs due to outsourcing { June 10 2004 } Stocks dip on inflation fears Stocks end lower after profit warning Stocks fall july 19 2004 Stocks fall sharply on weak job figures Stocks flat on greenspan raising interest rate worries Stocks higher on news of fed rate hike Stocks sag as oil prices steam higher Stocks tumble early aug on oil worries { August 5 2004 } Trade deficit sours US jobs growth slows down US stocks give back opening gains US trade gap widened in april to record 48b { June 14 2004 } Workers lack skills says greenspan { July 22 2004 } Files Listed: 35

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