praveen
04-12-2007, 06:48 AM
Wall Street tumbled Monday, led by financial services stocks, on concerns that the U.S. economy's expansion will erode amid troubles in the mortgage industry. The stock market's decline follows a week in which the Dow Jones industrial average made its biggest weekly point gain in more than four years, rising nearly 391 points, or 3.01 percent. But that advance proved short-lived after a pair of Federal Reserve officials on Monday expressed worry about the subprime mortgage crisis and its impact on banks and brokerages
The Dow Jones industrial average fell 57.15, or 0.43 percent, to 13,314.57.
Broader stock indicators were also lower. The Standard & Poor's 500 index dropped 8.72, or 0.59 percent, to 1,472.42, and the Nasdaq composite index fell 23.83, or 0.90 percent, to 2,637.13. Investors also considered a report from the Institute for Supply Management that showed the pace of growth in the manufacturing sector slowed in November, though not as quickly as had been expected. The report was better than analysts' expectations. Bond prices rose on Monday
Investors are awaiting the important November employment report. That could indicate the direction of consumer spending, which is seen as crucial to maintaining economic growth. In the meantime, Wall Street will be looking for other signals about how the economy will fare, including the housing sector. Paulson said the plan to freeze some interest rates is part of a ``pragmatic response'' to reality as the economy faces the worst housing pullback in more than 20 years.
The Dow Jones industrial average fell 57.15, or 0.43 percent, to 13,314.57.
Broader stock indicators were also lower. The Standard & Poor's 500 index dropped 8.72, or 0.59 percent, to 1,472.42, and the Nasdaq composite index fell 23.83, or 0.90 percent, to 2,637.13. Investors also considered a report from the Institute for Supply Management that showed the pace of growth in the manufacturing sector slowed in November, though not as quickly as had been expected. The report was better than analysts' expectations. Bond prices rose on Monday
Investors are awaiting the important November employment report. That could indicate the direction of consumer spending, which is seen as crucial to maintaining economic growth. In the meantime, Wall Street will be looking for other signals about how the economy will fare, including the housing sector. Paulson said the plan to freeze some interest rates is part of a ``pragmatic response'' to reality as the economy faces the worst housing pullback in more than 20 years.