Dow at 11,096, up 75 points, so far.
NEW YORK (AP) — Stocks dipped Thursday after concerns about
another disappointing report on jobs and traders worried about
foreclosure practices at banks. But losses were held in check by
expectations the Federal Reserve will act soon to strengthen the
economy.
Financial shares were the major drag on the market as concerns grew
about the steps banks took to foreclose on defaulted mortgages.
Shares of big banks like JPMorgan Chase & Co. and Bank of America
Corp. dropped as they have suspended foreclosing on homes to review
their practices.
The Dow Jones industrial average fell nearly 30 points in afternoon
trading. In recent months, the disappointing jobs report would have
likely led to a bigger sell-off in stocks. However losses following
weak economic reports have been limited recently because such
disappointment supports predictions the Fed will step in to support
growth.
“Good news is good news and bad news is good news,” said Sarah
Hunt, a research analyst at Alpine Mutual Funds. The Fed’s next
meeting ends Nov. 3 and it is widely expected an announcement on
actions to stimulate the economy will be announced then.
Traders sent the dollar lower and gold higher Thursday because of
the likely Fed move. The Fed is expected to buy government bonds,
which would drive down interest rates down from already low levels.
That makes gold and other currencies where interest rates are
higher more attractive than the dollar.
Gold hit another record high, while the dollar fell to a 15-year
low against the yen and touched its lowest level against the euro
since January.
“People are pretty focused on what the Fed is going to do,” said
Russell Croft, portfolio manager of the Croft Value Fund. Fed
chairman Ben Bernanke is scheduled to give a speech Friday that
could provide more details about how much money the central bank
might pump into the economy.
