Monthly Archives: November 2010

Friday stocks drop on China inflation

Midday Dow down 129 points, at 11,154.

NEW YORK (AP) — Stocks fell Friday as investors worried that China might try to slow its surging economy to combat inflation.
The Dow Jones industrial average dropped more than 80 points in midday trading. It briefly erased much of its losses after a preliminary report showed that consumer sentiment rose slightly more than expected this month. However, that relief was short-lived.
Energy and materials stocks were among the big losers as the prices of oil, gold and other commodities fell sharply. Oil companies like Chevron Corp. and ExxonMobil Corp. fell more than 1 percent. Freeport-McMoRan Copper & Gold Inc. fell about 3 percent. Intel Corp. was among the few gainers, rising more than 1 percent after the chip maker said it will raise its dividend 15 percent.
The Dow fell 83.63, or 0.7 percent, to 11,199.47 in midday trading.
The Standard & Poor’s 500 index fell 12.98, or 1.1 percent, to 1,200.56, while the Nasdaq composite index fell 28.47, or 1.1 percent, to 2,527.05.
The losses in the U.S. follow steep drops overnight in major Chinese indexes as traders fear China might be forced to raise interest rates to combat mounting inflation. The Chinese government said Thursday that the pace of inflation hit a more than two-year high in October.
The Shanghai composite index plummeted 5.2 percent Friday, while Hong Kong’s Hang Seng tumbled 1.9 percent.

Do you think a grocery store strike will happen?

The strike authorization vote was 94 percent among the 15,000 Western Washington grocery store workers mostly belonging to United Food and Commercial Workers Local 21. Look for my update soon, but both sides tell me this morning they’re willing to go to the table. A contract extension expires Monday. Then a 72-hour period has to run before any strike.

Call me or opinionate here.

Rachel Pritchett, reporter
(360) 475-3783
rpritchett@kitsapsun.com

Stronger dollar sends Monday stocks down

NEW YORK (AP) — Stocks are falling as the dollar gains strength amid renewed concerns that European countries will have trouble handling their debt.
With no major economic reports scheduled for Monday, traders are pulling back from a rally that sent stocks to yearly highs last week. The dollar is up 0.7 percent, which is helping to send the shares of companies like Caterpillar that rely on exports lower.
Technology companies are the only group showing modest gains. Hewlett-Packard Co. and Cisco Systems are both up more than 0.9 percent.
The Dow Jones industrial average is down 58, or 0.6 percent, to 11,387 in midday trading.
The S&P 500 is down 6, or 0.5 percent, to 1,220, and the Nasdaq composite is down 2, or 0.1 percent, to 2,576.

Friday stocks set highs for 2010 after boost from the Fed

Dow now at 11,410.

NEW YORK (AP) — The Federal Reserve wanted to push interest rates lower and jump-start financial markets with its $600 billion economic stimulus plan. So far the Fed is getting the results it wants.
Long-term interest rates sank and stocks indexes hit new highs Thursday, a day after the Fed announced its massive bond-buying plan. The Dow Jones industrial average soared more than 220 points, reaching another high for the year. All three main stock indexes have now reached 2010 highs this week.
After five straight days of gains, the Dow Jones industrial average returned to levels last seen in early September 2008, before the collapse of Lehman Brothers and the worst days of the financial crisis.
“Much of today’s gains comes as a result of the government pumping money into the market,” said Joe Kinahan, the chief derivatives strategist at TD Ameritrade.
The dollar fell against other currencies as traders anticipated lower U.S. interest rates because of the Fed’s bond-buying program. Crude oil, gold and other commodities rose.