Stocks remained largely unchanged as a result of disappointing economic data
February 18, 2008
The prices of stocks remained in a mixed state as a result of the rather depressing economic data that came out in the last week. The disheartening data about the manufacturing, import prices and the consumer confidence proved to be enough to remind the investors that the economy is not doing all that well currently. As a result of all this lackluster economic data that came out, the week that had begun with a rally came to a rather subdued end.
A Federal Reserve survey conducted in New York on the regional manufacturing showed that conditions have worsened further in this month. Another survey on the consumer sentiments of the country which was conducted by the University of Michigan showed that the consumer sentiments have fallen by a great deal as compared to last month’s standing. Another piece of data which paved path for more worries was the report that the Labor Department came up with. It showed that the import prices have jumped the roof just when the oil prices in the world were soaring.
The decline the market suffered on last Friday came just one day after the investors across the country let it be known that they were not too hopeful about the economy and sent the prices of the stocks down by more than one percent. This was a major hit for the economy as only earlier that week the market had gained strongly. The pull back by the investors were followed by some depressing remarks from the chairman of the Federal Reserve about the nation’s economy.
The investors all across the country appeared to be uninterested in making any sizable move even as the stocks closed on Monday because of the Presidents Day Holiday and other fresh economic concerns.
The fear factor is still very high in the minds of the investors. The Dow Jones industrial average fell by 0.23 percent and the Blue-chip index on the other hand finished the week with a small profit of 1.36 percent. The tech heavy NASDAQ took a fall of 0.46 percent to close the week. The value of government bonds also rose as the week came to an end. The US dollar yet again was in a mixed state as compared to the other major currencies in the world. The gold prices in the country however took a fall. The price of crude oil went up by four cents to come to a hault at $95.50 a barrel on the New York Mercantile Exchange.
Even though some of the data that came out on Friday was discouraging the investors largely remained uninterested. The central bank in the nation reported that the industrial output increased ever so slightly last month. This was something most experts were predicting because of the strength that was coming from the utilities.
The reason the investors are hesitant to go forth with investments is because they feel that the consumers are still uneasy about spending money. This they find to be a mortifying prospect as the consumer spending usually accounts for more than two-thirds of the total economic activity.