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Wall Street wobbles after growth slows
Detroit News.Net
Friday 27th January, 2012
U.S. stocks dropped on Friday, and the dollar dived, as the fourth quarter GDP figure for the U.S. failed to meet expectations.
Disappointing earnings reports also punctured leading stocks Juniper Networks, Ford Motor Company, T. Rowe Price, and Chevron.
At the close of trading Friday the Dow Jones Industrial Averages were down 74.17 points or 0.58% at 12,660.46.
The Nasdaq Composite surprisingly went against the trend, rising 11.27 points or 0.40% to 2,816.55.
The Standard and Poor's 500 was down 2.11 points or 0.16% at 1,316.32.
"Having the world's economic locomotive showing signs of strain is adding to investors concern worldwide," Jack Ablin, who helps oversee $55 billion as chief investment officer for Chicago-based Harris Private Bank, told Bloomberg television in a telephone interview. "The GDP report creates doubt about how solid the recovery is. It's a very difficult environment to assess."
Gross domestic product, the value of all goods and services produced, rose at a 2.8% rate, falling short of expectations for 3% growth.
The U.S. dollar was badly dented after the GDP data announcement. By the New York close Friday the euro had cruised to 1.3228, a multi-week high.
The Japanese yen rose to 76.66. The British pound added nearly a cent to 1.5733.
The Swiss franc strengthened to 0.9118, while the Australian dollar rocketed up to 1.0653.
The Canadian dollar rose to 1.0008 while the New Zealand dollar hit 0.8240.
The euro initially fell after Fitch announced it was downgrading the sovereign debt ratings of Spain, Italy, Belgium, Cyprus and Slovenia. The drop however was shortlived. Within minutes the euro zone currency rebounded to levels above 1.3200, a six-week high.
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