Friday Jun 08, 201203:29 PM GMT
US stocks slip on global concerns, Bernanke's comments
Fri Jun 8, 2012 3:28PM
Share | Email | Print


 U.S. stock market futures fell on Friday, as investors lost enthusiasm over China’s interest-rate cut on worries of what the move indicated about the direction of the global economy.


“Rather than boost confidence that the economic moderation in China can be reversed, the [rate cut] instead reinforced why it happened to begin with, the slowdown is beginning to hurt,” according to Peter Boockvar, equity strategist at Miller Tabak.


Futures for the Dow Jones Industrial Average fell 61 points, or 0.5%, to 12,345. Weighing on the blue-chip benchmark, McDonald’s Corp. reported global sales at stores open at least 13 months climbed 3.3% in May, short of analysts’ forecasts, as the fast-food chain’s sales fell in China and Japan. MarketWatch




In comments on Wednesday, Atlanta Fed President Dennis Lockhart and Federal Reserve Vice Chair Janet Yellen led investors to become optimistic about the possibility of more easing ahead, due in part to the effects of the euro-zone debt crisis. Reuters


U.S. stocks rose on Thursday after China's central bank cut lending and deposit rates, but retreated from session highs as comments from Federal Reserve Chairman Ben Bernanke dimmed hopes for further stimulus measures from the U.S. central bank. Reuters


But early enthusiasm faded as Bernanke told a congressional committee that the central bank was ready to take action if financial troubles increase, citing difficulties in Europe, but gave no hint of an imminent stimulus plan. Reuters


"I don't think the investment community thinks they are immune to Europe so it's not like it's a big revelation, but needless to say (Bernanke) is what the market is reacting to," said Jason Weisberg, managing director at Seaport Securities Corp in New York. Reuters


On Friday, S&P 500 futures dropped 5.7 points, or 0.4%, to 1,304.70, while Nasdaq-100 futures shed 7.5 points, or 0.3%, to 2,523. MarketWatch


Fears about a looming fiscal crisis at the end of the year are starting to pinch job growth and threatening to undercut the nation’s fragile recovery, a growing number of economists and employers say. CS Monitor


Federal Reserve Chairman Ben S. Bernanke, in testimony Thursday before Congress, repeatedly warned about the so-called fiscal cliff - a reference to the expiration of tax cuts Dec. 31 and the imposition of automatic spending reductions Jan. 1. CS Monitor


By some accounts, the U.S. economy could see an unprecedented fiscal hit of as much as $720 billion if the slated changes take effect. CS Monitor



Add Comment Click Here
  • Latest News
  • Top Hits
© Copyright 2010 Press TV. All rights reserved.