Stocks dropped lower earlier this morning and struggled throughout the majority
of the day to recover. Markets were hit with negative news early as the Federal
Reserve issued a statement relaying that fines would be levied on some of the
world's largest banks due to practices found to be "unsound" regarding
their handling of the foreclosure process. Foreclosures rates have recently
dipped lower, but many experts feel that this is only temporary as banks and
lenders verify that the process and paperwork is sound practice. In addition
today, the Labor Department reported that first time applications for
unemployment benefits increased. The data shows that the number of claims
increased last week by 27,000 to a total of 412,000. This data was unexpected as
was the data posting from the U.S. Bureau of Labor Statistics. The Bureau
reported that the Producer Price index rose only .7 percent which was
approximately four tenths below what was expected. The major stock indices were
trending in the red at the mid-day point. The Dow, Nasdaq, and S&P 500 were all
in negative territory at this point in the session. As the trading session
progressed, stocks began to recover however. Oil prices rose as well by $1 to
$108.11 per barrel. The Dow Jones finished green by .15 percent at 12,289.84.
The Nasdaq finished red by .05 percent at 2,760.22 and the S&P 500 ended the
session green by .01 percent at 1,314.52. Author: Frank Matto
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