U.S. Stocks, Dollar and Bonds Fall


By Jan Paschal NEW YORK (Reuters) - U.S. stocks and bonds fell on Tuesday as the dollar hit a record low against the euro. In New York, gold and oil prices dropped. But gold still ended above $450 an ounce, buoyed by the weak dollar. Oil held above $49 a barrel, after topping $50. The euro jumped to a record $1.3334 after European Central Bank President Jean-Claude Trichet told the European parliament that interest rates in the euro zone are very low and high oil prices have slowed the region's growth. Dealers took it as a sign the ECB will eventually raise rates and, in the meantime, do nothing to stop the euro's climb against the dollar. On Wall Street, stocks fell after three retail indices released on Tuesday showed the holiday shopping season got off to a sluggish start. High oil prices caused consumers to limit their spending. "Retail really was the factor that coming into this weekend, everyone was hoping would lead the market higher -- so it's quite a disappointment," said Robert Drust, managing director of listed trading at regional investment bank Wedbush Morgan. The Dow Jones industrial average was down 47.88 points, or 0.46 percent, to end at 10,428.02, its lowest close in two weeks. The Standard & Poor's 500 Index was down 4.75 points, or 0.40 percent, to close at 1,173.82. The Nasdaq Composite Index was down 10.06 points, or 0.48 percent, to finish at 2,096.81. But as November came to a close, all three major U.S. stock indexes showed gains for the month. Both the Dow and the S&P 500 turned in their best performance so far this year, with the Dow up 4 percent and the S&P 500 up 3.9 percent. The Nasdaq rose 6.2 percent in November, its largest rise since October 2003. U.S. Treasury bond investors sold debt after strong Midwestern business activity and upward revisions to gross domestic product showed the economy was still strong enough to let the Federal Reserve keep raising interest rates at a steady pace into 2005. RAIN ON RETAIL'S PARADE Shares of Wal-Mart Stores Inc.(WMT.N: Quote , Profile , Research ) , the world's biggest retailer, lost 2 percent to $52.06 after hinting it will cut prices in the weeks before Christmas.     Continued ...
Quelle "U.S. Stocks, Dollar and Bonds Fall" : reuters.com

Main page for "U.S. Stocks, Dollar and Bonds Fall"

.