Fed Doubts Drive Stocks Down

Consumer confidence report, Procter & Gamble forecasts are drags on markets
By Sam Gale Rosen,  Newser Staff
Posted Oct 30, 2007 3:51 PM CDT
U.S. Federal Reserve Chairman Ben Bernanke is seen at the International Monetary Fund Headquarters in Washington in this Oct. 20, 2007 file photo. (AP Photo/J. Scott Applewhite, file)   (Associated Press)
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(Newser) – Stocks closed down today as confidence that the Fed will cut interest rates tomorrow faded. The Journal reported that policymakers are considering no cut at all, meaning borrowing costs may stay high. The Dow slipped 77.79 to 13,792.47, the S&P 500 was down 9.96 to 1,531.02, and the Nasdaq fell 0.73 to 2,816.71.

The markets were in "wait-and-see mode," said one analyst, as Procter & Gamble issued a bleak profit forecast, consumer confidence sank to a 2-year low, and home prices continued to tumble. Energy stocks fell for the first time in 6 days as oil retreated from a record high, Bloomberg reports—but still closed above $90 a barrel.