Tucson CitizenTucson Citizen

Wall Street falls following steep rally last week

NEW YORK – Investors cashed in some of their gains Monday following last week’s rally and as the market’s focus shifts to consumer spending trends.

Investors put a two-month rally on hold after buying into the market last week. Markets had rallied on a better-than-expected report on unemployment and the disclosure of the government’s bank stress test results.

“There’s some profit taking,” said David Hefty, chief executive of Cornerstone Wealth Management in Auburn, Ind. “There were a lot of gains last week, especially in the financial sector.”

This week, the focus will shift from banks to consumer spending. First-quarter earnings figures are expected later this week from Wal-Mart Stores Inc., Macy’s Inc. and other retailers and the Commerce Department reports retail sales for April.

Macy’s reports first-quarter results Wednesday, while Wal-Mart will announce its quarterly results on Thursday.

Consumer spending accounts for more than two-third of economic activity. Upbeat outlooks from key retailers could give investors another reason to jump into the market.

In the first hour of trading, the Dow Jones industrial average is down 128.16, or 1.5 percent, to 8,446.59.

Broader stock indicators also fell. The Standard & Poor’s 500 index fell 18.21, or 2 percent, to 911.02, and the Nasdaq composite index fell 30.14, or 1.7 percent, to 1,708.86.

Last week, investors welcomed the government’s bank stress test results that showed which of the nation’s largest banks would need additional cash to cover any further weakening in the economy. Removing that uncertainty about which banks might need more capital helped calm many fears in the industry.



New York Stock Exchange: www.nyse.com

Nasdaq Stock Market: www.nasdaq.com

Citizen Online Archive, 2006-2009

This archive contains all the stories that appeared on the Tucson Citizen's website from mid-2006 to June 1, 2009.

In 2010, a power surge fried a server that contained all of videos linked to dozens of stories in this archive. Also, a server that contained all of the databases for dozens of stories was accidentally erased, so all of those links are broken as well. However, all of the text and photos that accompanied some stories have been preserved.

For all of the stories that were archived by the Tucson Citizen newspaper's library in a digital archive between 1993 and 2009, go to Morgue Part 2

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