Same Story, Same Result as Wall Street Tumbles
Well yesterday’s gains were short lived. Wall Street tumbled on Wednesday, giving back Tuesday’s gains and them some. Same story weighing down sentiment with fears about Greek debt and disappointing economic data as financial, energy and material stocks led the sharp losses. The Street is staring at 7 consecutive weeks of losses heading into action Thursday. The last time the S&P was down for seven weeks in a row was 10 years ago between January and March 2001. The Dow Jones industrial average fell 178.84 points, or 1.5 percent, to close at 11,897.27, with all 30 blue chip components declining. The S&P 500 index fell 22.45, or 1.7 percent, to 1,265.42, tracking back towards 1,250 as all 10 sectors were negative. The Nasdaq fell 47.26, or 1.8 percent, to 2,631.46.
Investors flooded into government debt and the greenback. So despite all of the debt fears some might have you cringing about in this country, at the end of the day, it starts and ends with the U.S Treasury. On the New York Mercantile Exchange, July crude fell $4.56, or 4.59 percent, to settle at $94.81 a barrel, its lowest settlement since February 22. Gold settled up $1.80, or 0.1%, to $1,526.20 an ounce as another safety play.
Consumer price inflation softened in May on a decline in energy costs. The consumer price index in May grew at a 0.2 percent rate, down from 0.4 percent in April. Despite the drop, the Street was looking for no change in the price level. Excluding food and energy, the CPI jumped 0.3 percent, following a 0.2 percent rise the month before. Analysts had forecast a 0.2 percent increase. Year-on-year, overall CPI inflation worsened to 3.4 percent from 3.1 percent in April. The core rate bumped up to 1.5 percent from 1.3 percent in April on a year-ago basis. Prices are picking up, energy prices are stoking higher cost of goods which are starting to feed through to the consumer.