Tuesday, March 17, 2009

U.S. Stock Market Has Opened Lower Becaused of Mixed Economic Data

Wall Street has opened lower because of some mixed economic data, that are inflation, and a little impact of Alcoa announcement.

Below are recaps on today's news:

- The Department of Commerce informed that construction of new homes increased 22.2 percent from January (477.000 units) to a seasonally adjusted annual rate of 583,000 units. Previously, the economists expected that the construction will drop to a pace of around 450.000 units.

- Core inflation, excludes energy and food, rose 0.2 percent in February, just little higher than the 0.1 percent gain that economists had expected. In January, the core inflation rose 0.4 percent.

- The Labor Department said that wholesale prices increased 0.1 percent. The statistic was smaller than the 0.4 percent increase that economists had expected.

- Alcoa has lowered its dividend on Monday after market closed. Instead of cut 82 percent of its dividend into 3 cents, Alcoa also said that it plans to sell stock and debt to help reduce annual costs by more than $2.4 billion.

There are news that circulated in Wall Street this morning, but now The Dow Jones Industrial has its rally again after Harry Reid said that Congress will force AIG's executives to pay back some of the $165 million bonuses they received. This news makes investors have their passion again.


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