Friday, June 26, 2009
June 26 (Bloomberg) — U.S. stocks fell as the highest American savings rate in 15 years spurred concern that spending will slow, while falling oil drove down energy producers. The dollar dropped after China’s central bank reiterated a call for a worldwide currency.
Exxon Mobil Corp. and Tesoro Corp. dropped as crude oil futures lost 1.5 percent to $69.19 a barrel. Eli Lilly & Co. helped lead declines by health-care companies as Senator Max Baucus said an industry overhaul may be affordable for Congress. The dollar slumped 0.7 percent against six trading partners as China sought to replace it as the global reserve currency.
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The Standard & Poor’s 500 Index decreased 0.8 percent to 913.31 at 11:03 a.m. The Dow Jones Industrial Average fell 69.68 points, or 0.8 percent, to 8,402.72.
“The magnitude of that savings rate may have gotten some folks by surprise,” said Philip Orlando, who helps manage $409 billion as chief equity market strategist at Federated Investors Inc. in New York. Economic and earnings growth is “potentially not going to be as robust as some were thinking. That’s weighing on stocks.”
This article was posted: Friday, June 26, 2009 at 8:05 am