Stocks Continue to Slide on China and European Sovereign Debt Worries
The U.S. equity market is continuing to fall on worries over inflation in China and the debt crisis in Europe. The Dow Jones is currently down 1.45% to 11,039.59, the S&P 500 is currently down 1.46% to 1,280.28 and the Nasdaq is currently down 1.57% to 2,474.26.
The decline in the equity market is being led by energy and basic materials stocks. Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) is among the biggest loser in the basic materials sector. Shares of Freeport-McMoRan are currently down 5.18% to $96.72, after touching an intra-day low of $96.02.
According to Republican Senator Bob Corker, the U.S. Federal Reserve to focus only on price stability rather than have a “dual mandate” to fight inflation and also maintain full employment. Corker, who is also a member of the Senate Banking Committee, gave his views in a statement released today.
U.S. homebuilders confidence improved for a second month in a row in November, an indication that residential construction may hold at depressed levels. The National Association of Home Builders/Wells Fargo confidence index improved to a five-month high of 16 in November from 15 in October.
The Federal Reserve today reported that industrial production was flat in October following a cutback in utility use due to warm weather. Factory production increased 0.5% in October following a 0.2% gain in September, while utilities output dropped 3.4% in October, following a 2.2% decline in September.
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