Wall Street fluctuates again
NEW YORK (AP) - January 28, 2008 Investors around the world are concerned there may be more
massive write-downs by big banks for subprime loan losses. They
also worry that the Federal Reserve may not cut interest rates as
much as investors would like Wednesday to stoke a weakening U.S.
economy.
The market discovered worrisome clues about the economy in
ostensibly upbeat profit reports. Fast food seller McDonald's, a
Dow component, said its quarterly profit rose 3 percent due to tax
benefits and strong sales, but December sales were flat with a year
ago as cash-strapped consumers pared back spending. And while
Verizon, another Dow component, reported a 3.9 percent improvement
in profit, the results met analyst expectations but did not exceed
them.
Verizon shares fell $1.38, or 3.7 percent, to $36.38, while
McDonald's shares fell $3.46, or 6.4 percent, to $50.64.
The Dow Jones industrial average fell 19.43, or 0.16 percent, to
12,187.74.
Broader stock indicators also fell. The Standard & Poor's 500
index rose 0.21, or 0.02 percent, to 1,330.82, while the Nasdaq
composite index fell 0.64, or 0.03 percent, to 2,325.56.
