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发帖数: 1972 | 1 NEW YORK (AP) — A quiet day on Wall Street turned into the worst sell-off
in three months after a Federal Reserve official said he doubted the bank's
effort to boost economic growth would work.
Charles Plosser, president of the Fed's Philadelphia branch, told an
audience Tuesday that the Fed's effort to support the economy would likely
fall short of its goals.
The speech probably startled some investors who had faith in the Fed's
latest plan, said Jack Ablin, chief investment officer Harris Private Bank.
The plan includes buying $40 billion in mortgage bonds each month until the
economy improves.
"So many investors have bought into the illusion," he said. "And it was like
Plosser pulled up the curtain on the Wizard of Oz."
The Standard & Poor's 500 index lost 15.30 points, its fourth straight
decline, to close at 1,441.59. The 1.05 percent drop was the worst for the S
&P since June 25.
The Dow Jones industrial average lost 101.37 points to close at 13,457.55.
Caterpillar tugged the Dow down, losing 4 percent. The world's largest maker
of bulldozers and other heavy equipment said late Monday that slower
economic growth around the world dampened its earnings forecast. Its stock
sank $3.86 to $87.01.
Stocks enjoyed one of their biggest rallies of the year Sept. 6 after Mario
Draghi, the president of the European Central Bank, laid out a plan to buy
unlimited amounts of government bonds to lower borrowing costs for Europe's
debt-burdened countries.
A week later, Fed Chairman Ben Bernanke announced the central bank's open-
ended mortgage bond-buying program and pledged to hold interest rates at
super-low levels into 2015.
The S&P soared to a nearly five-year closing high of 1,465 the next day,
Sept. 14, but has drifted lower since and fallen back almost to where it was
before Bernanke's announcement.
On Tuesday, three economic reports gave the stock market a nudge in morning
trading. House prices rose in major cities for a third straight month, and a
gauge of consumer confidence came in surprisingly high.
More surprising than those two economic reports was the Richmond Federal
Reserve's strong reading on regional manufacturing, a recent trouble spot,
said Phil Orlando, chief equity strategist at Federated Investors.
"Look at that. There were three data points on the economy and we crushed
them," said Phil Orlando, chief equity strategist at Federated Investors.
But sagging profits could drag on the stock market in the coming weeks,
Orlando said. Caterpillar joined a growing collection of companies that have
lowered their earnings forecasts. FedEx, a bellwether of world trade, said
Sept. 18 that shipping has sunk to recession-like levels. Railroad giant
Norfolk Southern has also warned that falling shipments and sinking coal
prices will likely drag down its earnings.
Wall Street analysts now estimate that corporate profits will be lower this
quarter than a year earlier. That would be the first such drop in three
years.
The Nasdaq composite index dropped 43.05 points to 3,117.73. Google's stock
touched an all-time high in early trading, clearing $764, but closed the
trading day at $749.16.
Apple, the largest public company in the world, lost $17.25, or 2.5 percent,
to close at $673.54. It has lost more than $26 in two days. Apple is the
biggest component in the S&P but is not included in the Dow, helping explain
why the S&P suffered a greater percentage decline than the Dow's 0.8
percent.
The closely watched Standard & Poor's/Case Shiller index of national house
prices increased 1.2 percent in July compared with the same month in 2011.
Prices rose from the previous month in all 20 major cities tracked by the
report for the third month in a row.
The Conference Board said its gauge of consumer confidence shot to a seven-
month high of 70.3 in September, up from 61.3 in August and far higher than
the 63 analysts were expecting. People surveyed said they were more
optimistic about the job market.
The Federal Reserve's manufacturing index, which surveys companies in the
central Atlantic region, increased after shrinking for three months as
businesses turned more optimistic. Companies said they anticipate more
orders and shipments even as employment dips. The index turned positive in
September after a negative reading in August.
Treasury prices rose as traders shifted money into safe assets. The 10-year
Treasury yield, the benchmark for mortgages and other loans, dipped to 1.67
percent from 1.71 percent late Monday. | T*C
发帖数: 5492 | 2 FED is no good for the market, too much talking, no matter positive or
negative
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【在 d******8 的大作中提到】
: NEW YORK (AP) — A quiet day on Wall Street turned into the worst sell-off
: in three months after a Federal Reserve official said he doubted the bank's
: effort to boost economic growth would work.
: Charles Plosser, president of the Fed's Philadelphia branch, told an
: audience Tuesday that the Fed's effort to support the economy would likely
: fall short of its goals.
: The speech probably startled some investors who had faith in the Fed's
: latest plan, said Jack Ablin, chief investment officer Harris Private Bank.
: The plan includes buying $40 billion in mortgage bonds each month until the
: economy improves.
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