(Long Island, N.Y.) Wall Street continues to struggle on downbeat economic forecast and soaring oil prices at the New York Mercantile Exchange as Dow Jones Industrial extended its two-week slide to settle at its lowest level since October of 2006 with 11,740.15 points at day’s close.
Several mortgage companies forged Wall Street’s decline with negative news spiraling out of control from the industry. A reported security fraud by Countrywide Financials which resulted into a possible inquiry by the government helped negate strong sales report for McDonalds Inc. for the month of February which would have given the market a much needed boost. Also on Monday, Thornburg Mortgage Inc. was downgraded by a Jefferies & Co. analyst a move experts surmise as a sign of things to come for other troubled mortgage companies.
“The next three days, there aren’t any set, big, market-moving reports,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research. “The economic data Thursday and Friday is going to be the last bit of news, the last showing, before seeing what the Fed will do on the 18th.”
Dow Jones Industrial lost 153.54 points or 1.29 percent on Monday to stretch its three day losses to over 515 points and drag down DJIA’s total points under the 12,000 barrier which is a first since early January this year to finish with 11,740.15 points. Broader indexes also fell with Standard and Poor 500 dropping 20 points or 1.55 percent to end with 1,273.37 while NASDAQ composites decreased 43.15, or 1.95 percent to finish with 2,169.34 points.
On March 18th, the Federal Reserves head by Chairman Ben Bernanke will meet to discuss current state of the economy and possible steps needed to insure avoidance of possible recession and inflation threats. Among the steps discussed is the further decrease of Interest rates and the government’s fast approval of the proposed stimulus package geared to help out our struggling economy.
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