Dow Tumbles 86 Points, Erases 2006 Gains Options

[dauss]

http://biz.yahoo.com/ap/060613/wall_street.html?.v=19

Stocks Plunge on Mixed Inflation Signals; Dow Tumbles 86 Points, Erasing 2006 Gains

NEW YORK (AP) -- Wall Street resumed its retreat with another session of steep losses Tuesday as declines in oil and gold prices did little to calm anxiety over inflation. The selloff erased the Dow Jones industrial average's gains so far in 2006.

Investors struggled to make sense of the Labor Department's May producer price index, which showed a mild uptick in wholesale prices but a stronger-than-forecast rise in inflation without food or energy costs. The data suggested that energy costs did not grow as much as expected, but the higher core prices nonetheless kept the market on edge.

While a downturn in commodities fed some hopes about easing inflation, persistent uncertainty about whether the Federal Reserve will continue boosting interest rates left investors unwilling to buy stocks amid fears of an economic crash.

"(The PPI data) was not conclusive enough to drive the market," said Rick Pendergraft, an equity trader for Schaeffer's Investment Research. If Wednesday's consumer price data comes in below or meets expectations, that might spark a rally following stocks' hefty slide over the past month, he said.

Wall Street's pullback trailed sharp losses on stock markets worldwide, which were driven by worries that a weakening U.S. economy will overturn other economies in its wake. The continued inversion of short- and long-term bond yields was also evidence of the market's expectations of an economic slowdown.

The Dow tumbled 86.44, or 0.8 percent, to 10,706.14, after losing nearly 100 points on Monday. The Dow is now down 0.11 percent for 2006.

Broader stock indicators pulled back and widened their losses for the year. The Standard & Poor's 500 index dropped 12.71, or 1.03 percent, to 1,223.69, and the Nasdaq lost 18.85, or 0.9 percent, to 2,072.47.

So we're back to where we were six and a half months ago.

[GOB]

i like looking at strings of words and not be able to comprehend any of it
i am such a woman

now now, what are you doing out of the kitchen?




ha, and i didn't notice the "tumbles" part of the title. good stuff. i bet it "plummets" another 10 or 15 points tomorrow.