The Norman Transcript

Nation/World

September 24, 2013

Concern about economy, budget affects stocks

NEW YORK — Concerns about the strength of the economy and the potential for a budget fight in Washington pushed down the stock market Monday.

The Dow Jones industrial average and the Standard & Poor’s 500 index fell for a third straight day.

Investors initially cheered the Federal Reserve’s decision last Wednesday to keep its huge stimulus program in place. But they’ve since focused on the central bank’s gloomier outlook for growth.

William Dudley, the President of the Fed’s New York Branch said Monday that while the economy was improving, “the headwinds” created by the financial crisis were only easing slowly.

“At first blush (the stimulus) looks positive,” said Kate Warne, an investment strategist at Edward Jones, a financial advisor. “But at second blush, it says conditions weren’t as strong as we were previously thinking. Markets are now responding to that.”

The Dow jumped 147 points last Wednesday to close at an all-time high. But the gain from that rally has been erased.

On Monday, the S&P 500 index dropped 8.07 points, or 0.5 percent, to close at 1,701.84. The index was fractionally lower than its level before the Fed’s decision last Wednesday.

The Dow fell 49.71 points, or 0.3 percent, to 15,401.38 The Nasdaq composite fell 9.44 points, or 0.3 percent, to 3,765.29.

Financial stocks fell the most among the 10 industrial groups in the S&P 500 index. Investors sold financial stocks on concerns that their earnings would be hurt by lower trading volumes of bonds and foreign currencies.

1
Text Only | Photo Reprints
Nation/World
  • Traps set in New Jersey lake while animal control searches for snake

    JEFFERSON, N.J. — Reports of a 16-foot-long exotic snake — possibly an anaconda — slithering through New Jersey’s largest lake have stoked fears among residents and led to searches and questions about what exactly is in the water....

    July 23, 2014

  • Airlines cancel air traffic after rocket attack

    JERUSALEM — A Hamas rocket exploded Tuesday near Israel’s main airport, prompting a ban on flights from the U.S. and many from Europe and Canada as aviation authorities responded to the shock of seeing a civilian jetliner shot down over ...

    July 23, 2014

  • Remains of victims from Malaysian airliner crash transported by train to Ukrainian controlled territory

    KHARKIV, Ukraine — A train bearing the dead from the downed Malaysian airliner reached Ukrainian government-held territory at long last Tuesday, but the pro-Russian separatists in control of the crash site showed little willingness to ...

    July 23, 2014

  • Contrarian’s case: Why the U.S. could be dragged down by struggling world economies?

    NEW YORK — Just as the U.S. economy is strengthening, other countries are threatening to drag it down....

    July 23, 2014

  • Dueling rulings: Courts split on health law

    WASHINGTON — President Barack Obama’s health care law is snarled in another big legal battle, with two federal appeals courts issuing contradictory rulings on a key financing issue within hours of each other Tuesday....

    July 23, 2014

  • Obama nominee pledges to ‘transform’ VA

    WASHINGTON — President Barack Obama’s choice to lead the Department of Veterans Affairs pledged Tuesday to transform the beleaguered agency, saying that “systematic failures” must be addressed....

    July 23, 2014

  • Friend is first convicted in Boston Marathon probe

    BOSTON — The conviction of a friend of Boston Marathon bombing suspect Dzhokhar Tsarnaev for impeding the investigation into the bombings has his lawyers wondering if anyone else who faces charges connected to the 2013 attack stands a ...

    July 23, 2014

  • Rebels release train with bodies from jet

    HRABOVE, Ukraine — Bowing to international pressure, pro-Moscow separatists released a train packed with bodies and handed over the black boxes from the downed Malaysia Airlines plane, four days after it plunged into rebel-held eastern ...

    July 22, 2014

  • Gaza death toll passes 560

    GAZA CITY, Gaza Strip — A high-level attempt by the U.N. chief and the U.S. secretary of state to end deadly Israel-Hamas fighting was off to a rough start Monday: Gaza’s Hamas rulers signaled they won’t agree to an unconditional ...

    July 22, 2014

  • Perry sending Guard troops to border

    AUSTIN, Texas — Gov. Rick Perry is deploying up to 1,000 National Guard troops to the Texas-Mexico border over the next month to combat what he said Monday were criminals exploiting a surge of children pouring into the U.S. illegally. ...

    July 22, 2014