- Marionville mayor ‘kind of agreed’ with Kansas City shooter’s views
- Rev. Al Sharpton’s Easter message: Politically ‘crucified’ Obama has risen again
- Supreme Court to weigh challenge to ban on campaign lies
- UNICEF launches ‘Mr. Poo’ mascot in India to curb public defecation
- Teen taking selfie by train: ‘Wow, that guy just kicked me in the head’
- Goodbye, Afghanistan — hello, Africa: Air Force to shift as U.S. exits Middle East
- Iran mulls ban on vasectomies, decrease on abortions to bolster population
- CNN op-ed claims right-wingers ‘more deadly than jihadists’
- Classes resume at high school rocked by stabbings
- ABC News accuses Center for Public Integrity of stealing Pulitzer-winning work
With Fed rate cuts over, markets continue decline
U.S. stocks tumbled yesterday, sending the Standard & Poor’s 500 Index to its biggest two-day drop since March, as the Federal Reserve signaled that it is done cutting interest rates and as record oil prices threatened to reduce profits at consumer companies.
Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. sent financial shares to their lowest since April 15. Target Corp. led retailers to their worst decline in a month, and an index of airlines slid to an all-time low as crude climbed above $133 a barrel.
The S&P; 500 lost 22.69 points, or 1.6 percent, to 1,390.71. The Dow Jones Industrial Average slid 227.49, or 1.8 percent, to 12,601.19. The Nasdaq Composite Index fell 43.99, or 1.8 percent, to 2,448.27. Four stocks retreated for every one that rose on the New York Stock Exchange.
“The American market is a bottomless pit right now,” said Peter Schiff, president of Darien, Conn.-based brokerage Euro Pacific Capital, which has more than $1 billion in customer accounts. “The Fed can’t cut rates any more. Oil is $132 a barrel and rising. Any company that collects revenues from American consumers is going to have terrible earnings, and share prices are going to fall.”
All 10 industries in the S&P; 500 slid after the minutes from the Fed’s April meeting suggested that record energy costs and rising public expectations for inflation threatened their ability to continue cutting rates. Policy-makers also reduced their projections for economic growth this year by almost a full percentage point and raised their forecasts for inflation amid curtailed bank lending and a record rise in the prices for oil.
The S&P; 500 Financials Index slumped for a fourth day, losing 2.3 percent. The index has tumbled 34 percent in the past year, allowing technology companies to surpass the group as the biggest industry in the S&P; 500, after global banks and securities firms racked up $379 billion in asset write-downs and credit losses related to the collapse of the subprime-mortgage market.
Lehman Brothers Holdings Inc. lost 5.8 percent to $39.56 after Merrill Lynch & Co. reduced earnings forecasts. Lehman will probably earn 6 cents a share in the quarter that ends May 30, down from Merrill’s earlier estimate of 82 cents. Merrill analyst Guy Moszkowski lowered his full-year estimate to $2.80 per share from $3.88.
By F.H. Buckley
Obama has taken imperious overreach to new extremes
- 'Culture of intimidation' seen in Nevada ranch standoff
- Rand and Ron Paul ride to the rescue for Bundy in Nevada standoff with feds
- Nevada Bundy ranch standoff could leave dirt on Harry Reid reputation
- WEBER: Obamacare cuts home healthcare for millions of seniors
- Atheists rush to stage Easter display: 'Jesus Christ is a myth'
- Fuel-filled wings, ability to swarm: Pentagon offers glimpse at future of drone fleet
- U.S. Navy to turn seawater into jet fuel
- CARSON: Recovering Tocqueville's vision of American exceptionalism
- GOP writes legislation to deny Attorney General Eric Holder his salary
- UNICEF launches 'Mr. Poo' mascot in India to curb public defecation
Celebrity deaths in 2014
Top 10 handguns in the U.S.