Associated Press
Saturday, January 19, 2008
NEW YORK, Jan. 18 -- Wall Street ended a painful week with another decline Friday as investors unable to hold on to much optimism about the economy drew little comfort from President Bush's stimulus plan.
The day's trading reflected how fractious Wall Street has been in the new year. Investors pulled back from a big early advance, with trading mixed on the major indexes as Bush began to speak. By the time the president finished announcing a plan for about $145 billion worth of tax relief, the indexes were well into negative territory.
The Dow Jones industrial average, which was up more than 180 points early in the session, fell 59.91, or 0.49 percent, to 12,099.30. The Standard & Poor's 500-stock index fell 8.06, or 0.60 percent, to 1325.19, while the Nasdaq composite index dropped 6.88, or 0.29 percent, to 2340.02.
For the week, the Dow and the Nasdaq lost 4 percent, while the S&P 500 gave up 5.4 percent.
Coming after Bush's announcement, Friday's pullback made it clear that the stock market is in for a protracted period of uncertainty and continued declines. Investors have shrugged off all the positive signs they've received in recent days, including assurances last week from Federal Reserve Chairman Ben S. Bernanke that the Fed is ready to act aggressively.
Many investors have been hoping that the Federal Reserve would put in place an intra-meeting rate cut before the central bank's next monetary policy meeting Jan. 29-30.
A better-than-expected reading on consumer sentiment came as a pleasant surprise to investors Friday but ultimately did not help Wall Street save its early advance. The University of Michigan's index, which most economists expected to show a decline for mid-January, rose instead.
Movers
Ambac fell 4 cents, to $6.20, after Fitch Ratings downgraded the company's credit rating.
Under Armour fell $9.05, to $28.01, after the Baltimore maker of athletic clothes forecast first-half profit that trailed analysts' estimates.
IBM rose $2.30, to $103.40, after the company signaled that overseas sales will help overcome the U.S. slowdown.
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