Jun 28, 2008 9:03 am US/Eastern
CBS4 Your Money: A Week Of Consumer Worries
The Dow Jones Industrial Average Has Declined By More Than 20%, Which Is The Guideline For Defining A "Bear" Market
MIAMI (CBS4) ―
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Traders work on the floor of the New York Stock Exchange.
Spencer Platt/Getty Images
Stocks edged lower on Friday as many of the same factors that led to previous days' selloffs lingered. Oil prices jumped and Wall Street analysts continued to lower their views on banks, but a strong report on consumer spending helped cut through the gloom by week's end.
On Monday, the week began on a down note with oil prices on the way up again. During the weekend, there was an oil summit of producers and consumers in Saudi Arabia, which disappointed traders who hoped the Saudis would agree to pump a lot more crude oil than they offered.
On Tuesday, it was all about home prices with April sales figures showing double-digit annual declines. In Miami, that decline meant home values have dropped nearly 27 percent.
On Wednesday, the Federal Reserve Bank had its open market meeting and left interest rates unchanged at 2 percent. The economy might still need a jolt, but the central bank is shifting its efforts to taming inflation.
On Thursday, stocks took a big tumble as the Dow Jones Industrial Average dropped 358 points, and crude oil topping $140 a barrel. There were less-than-stellar earnings reports from the auto, financial, and high-tech sectors; nervous investors sold off, leaving others to hunt for bargains.
On Friday, the week closed out with a bit of good news. The government said consumer disposable incomes rose 5.7 percent in May, the biggest jump since 1975. The reason: those tax rebate checks which Uncle Sam hopes people will spend.
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