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

Stocks dip on inflation fears Original Source Link: (May no longer be active)    http://www.forbes.com/work/feeds/ap/2004/06/14/ap1411871.html http://www.forbes.com/work/feeds/ap/2004/06/14/ap1411871.html Associated Press Stocks Dip Lower on Fears of Inflation 06.14.2004, 11:16 AM Fears of inflation and higher interest rates took hold on Wall Street Monday as new data on consumer spending sent stocks lower. The Commerce Department's latest retail sales figures showed a larger-than-expected increase in sales, indicating consumers' hunger for a wide variety of goods. While the data was evidence of an economy on sound footing, it also fed concerns that pent-up demand could drive prices higher. Should inflationary data over the next couple of weeks continue on this track, analysts said the Federal Reserve may feel the need to raise interest rates by a half percentage point at the end of the month, instead of the quarter point Wall Street is expecting. "The benign pace of rates the market has discounted may not be the case now," said Russ Koesterich, U.S. equity strategist at State Street Corp. "That doesn't really make stocks look attractive. There's no real reason to go out and sell everythying you own, but no real catalyst to buy, either." In late morning trading, the Dow Jones industrial average fell 66.57, or 0.6 percent, to 10,343.53. Broader stock indicators were also lower. The Standard & Poor's 500 index was down 9.22, or 0.8 percent, at 1,127.25, and the Nasdaq composite index dropped 21.67, or 1.1 percent, to 1,978.20. Retail prices were up 1.2 percent in May, 0.2 percent higher than expected, the Commerce Department said. Automotive sales rose a strong 2.7 percent, the biggest gain since November, while all other goods were up 0.7 percent for the month. April's retail sales had fallen 0.6 percent. Consumers also want foreign-made goods. The U.S. trade deficit rose to a record $48.3 billion in April, up 3.8 percent from March's previous all-time high, the Commerce Department said in a separate report. Higher oil prices contributed to the new record, as well as a drop in U.S. exports. In corporate news, MGM Mirage Inc. raised its bid for Mandalay Resort Group, now offering $71 a share for the rival casino operator, up from the previously rejected offer of $68 per share. The deal was done in consultation with Mandalay and is likely to be approved. Mandalay dropped 72 cents to $67.70, while MGM Mirage fell 54 cents to $47.06. Nokia Corp. fell 19 cents to $14.05 after announcing production of five new cell phones and promising to regain lost market share. The company declined to give details on its 2004 forecast. RealNetworks Inc. and Starz Encore Group LLC, a Liberty Media Corp. subsidiary, launched a joint Internet subscription movie service, offering 100 movies per month for $12.95. RealNetworks was unchanged at $6.00, while Liberty Media fell 16 cents to $9.23. Declining issues outnumbered advancers by nearly 4 to 1 on the New York Stock Exchange, where volume came to 321.50 million shares, compared with 338.87 million at the same point Friday. The Russell 2000 index of smaller companies was down 7.03, or 1.2 percent, at 562.09. Overseas, Japan's Nikkei stock average slipped 0.3 percent. In afternoon trading, Britain's FTSE 100 was down 1.1 percent, Germany's DAX index fell 1.7 percent, and France's CAC-40 tumbled 1.6 percent.

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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