- The Washington Times - Monday, May 14, 2007

NEW YORK (AP) — Wall Street closed narrowly mixed yesterday after investors, uneasy about the government’s upcoming inflation data, cashed in some of their gains from the market’s monthslong rally.

Blue-chip stocks managed a modest increase after DaimlerChrysler AG’s announcement that it will sell 80.1 percent of money-losing Chrysler Group to Cerberus Capital Management LP, a private equity group, for $7.4 billion. The deal, which lifted stocks in the automotive sector, undoes a 1998 merger aimed at creating a global auto giant.

The news buoyed the Dow Jones Industrial Average briefly to a new trading high, but the overall stock market dipped, with many investors wary before today’s release of the Labor Department’s Consumer Price Index (CPI), a key measure of inflation.

The market expects the April CPI to have risen 0.5 percent, slower than in March, but it anticipates the core figure — which strips out food and energy prices — will have risen 0.2 percent, a slightly larger jump than March’s 0.1 percent increase. A report that suggests consumer costs are climbing much faster could frustrate investors hoping for an interest-rate cut from the Federal Reserve later in the year.

The Dow advanced 20.56, or 0.15 percent, to 13,346.78, after rising in the morning to a trading record of 13,383.76.

Broader stock indicators fell. The Standard & Poor’s 500 Index declined 2.70, or 0.18 percent, to 1,503.15, and the Nasdaq Composite Index lost 15.78, or 0.62 percent, to 2,546.44.


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