Monday, June 8, 2009
U.S. stocks fell for a second day, led by commodity and consumer shares, on growing concern the Federal Reserve will have to start raising interest rates as inflation accelerates. Shares in Europe and Asia retreated.
Freeport-McMoRan Copper & Gold Inc., the world’s largest publicly traded copper producer, slid 3.1 percent on falling metal prices. McDonald’s Corp. sank 2 percent as the world’s biggest restaurant company posted U.S. sales that trailed analysts’ estimates. AT&T Inc. lost 1.7 after being removed from the “Americas Conviction Buy” list at Goldman Sachs Group Inc.
The Standard & Poor’s 500 Index slipped 0.9 percent to 931.24 at 11:08 a.m. in New York. The Dow Jones Industrial Average declined 86.61 points, or 1 percent, to 8,676.52. The Russell 2000 Index lost 1.4 percent.
(ARTICLE CONTINUES BELOW)
“After equity markets, not just in the U.S. but all over the world, have gone up 35, 40 percent or more over the past three months, ideas that are immediately appealing are few,” Jean-Marie Eveillard, a senior adviser to the $7 billion First Eagle Global Fund that beat the S&P 500 every year this decade, told Bloomberg Television. “Current policies by the American government and the Fed are potentially wildly inflationary
The S&P 500 trimmed its third straight weekly advance on June 5 as concern higher interest rates will threaten an economic recovery overshadowed a better-than-estimated employment report. U.S. stocks last week extended a three-month rally that lifted the S&P 500 by 39 percent since March 9 as the government and Federal Reserve pledged $12.8 trillion to end the first global recession since World War II.