Wall Street ended a depressing week with another big loss today amid ever-escalating worries about high oil prices and fallout from the...
NEW YORK — Wall Street ended a depressing week with another big loss today amid ever-escalating worries about high oil prices and fallout from the credit crisis.
The Dow Jones industrial average fell 106.91 to 11,346.51, compounding Thursday’s 358-point skid. The blue chip index is down 19.9 percent from its high in October.
The Dow has fallen nearly 460 points in the last two days and reached its lowest point since September 2006.
Microsoft, one of the 30 Dow stocks, slipped 12 cents to close at $27.63 a share. Boeing, also a Dow stock, fell $1.29 to $66.92 — it’s third straight close at a 52-week low.
Most Read Business Stories
- Boeing made an entire fake neighborhood to hide its bombers from potential WWII airstrikes
- 1 house, 45 offers: Homebuyers in Western Washington hard-pressed as supply remains scarce
- 55,000 in Washington state may have to pay back thousands in jobless benefits
- Seattle artists worry potential sale of historic INS building could spell the end for their studios
- Frontier cancels flight, citing maskless passengers
Broader stock indicators also closed lower. The Standard & Poor’s 500 index fell 4.77 to 1,278.38, and the Nasdaq composite index fell 5.74 to 2,315.63.
Investors again contended with a seemingly relentless stream of troubling news about the financial sector. Moody’s Investors Service said it is reviewing investment bank Morgan Stanley for a possible downgrade. There were also more reports that Merrill Lynch might have to write off nearly $6 billion of risky mortgage-backed debt.
In addition to anxiety about the financials, the market watched oil’s march higher — the price of crude rose to a new record of $142.99 a barrel on the New York Mercantile Exchange. Wall Street remains concerned that higher commodity prices will slam consumers with not only elevated costs for energy and food, but also for other goods if cash-strapped companies decide to pass along the rising costs.
“People are trading with a lot of emotion,” said Alexander Paris, an economist and market analyst for Barrington Research. “I think the market is trying to make a bottom, but the question is will it hold there or just crash through. It feels just like the top of the technology bubble in 2000, you know there’s something wrong but it is hard to time it.”
Investors got little solace from economic data released this morning. The Commerce Department said spending rose 0.8 percent in May, as taxpayers started receiving their stimulus checks. The increase was higher than the 0.7 percent economists predicted. The report also said personal incomes surged 1.9 percent — significantly more than anticipated. After taxes, incomes surged 5.7 percent, the largest amount in 33 years.