Business

Stocks go down, oil rises
by Claudia Sonea

Goldman Sachs predictions are becoming true. Oil price has spiked again and reached a new record of 127 dollars a barrel. Now all the other analysts can eat blush in shame of being wrong, because the oil price is far from reach its peak. In addition the Fed has also underlined the danger of inflation, scaring completely all investors, thus it is to no one surprise that stocks declined yesterday. Fed Chairman Ben Bernanke highlighted that the markets are still insecure due to oil prices and the housing slump to which was added a big demand for lending from financial institutions. As it is, the Dow Jones fell 0.34 percent, the Standard & Poor’s 500 Index 0.04 percent, while the Nasdaq rose due to Yahoo shares jumping 5.2 percent. Wall Street criticized harshly the deal HP- EDS, considering it jeopardizes the already weak financial market. Why is oil price so important for the economy? All goods depend on it and its growth implies higher prices to everything else and less interested people in spending. Also the growth of oil prices is due to a focus of investors on oil and gold as the dollar is losing ground against foreign currency. There is still some good news coming from Wal-Mart Stores announcing a big profit, although it will not be enough to not trouble the Wall Street. Whether the economy is facing inflation or not, has become the number one issue of Fed. While politicians fight their campaign for presidency, Americans deals with hard times. Stocks are slidding, businesses are going bankrupt and goods tend to become a luxury.

related story: http://news.yahoo.com/s/nm/20080513/bs_nm/markets_stocks_dc;_ylt=ApMdYVAcwuUl3MgXBRCMAfus0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>

edited by Zuzana Lakostikova

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posted by Blog TechSource @ 1:16 AM