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Markets Rally After Early Swoon

Good numbers from consumers make for bullish afternoon

By Jonas Oransky,  Newser Staff

Posted Dec 13, 2007 3:43 PM CST
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(Newser) – Thanks to two pieces of unexpectedly good news today, the markets erased early losses, the Dow climbing 44.06 to 13,517.96 after dipping to almost 13,350 this morning. Retail sales in November increased 1.2%, twice what watchers had estimated. And wholesale prices had their biggest one-month jump since 1973, a 3.2% rise nearly doubling estimates, the Journal reports. Both numbers suggested economic strength.

The Nasdaq slipped 2.65 points to 2,668.49, while the S&P tacked on 1.82 to close at 1,488.41. But the good consumer numbers also weaken the case for future rate cuts, investors fear. Inflation was the new concern, and Lehman Brothers, Morgan Stanley and Merrill Lynch all had bad days as a result. Market watchers meanwhile continued to debate yesterday’s Fed cash injection plans.

A trader leans on a phone post on the floor of the New York Stock Exchange, Tuesday, Dec. 11, 2007. Wall Street rose modestly Tuesday as investors awaited the Federal Reserve's interest rate decision and absorbed more fallout from the mortgage and credit crisis. (AP Photo/Richard Drew)
A trader leans on a phone post on the floor of the New York Stock Exchange, Tuesday, Dec. 11, 2007. Wall Street rose modestly Tuesday as investors awaited the Federal Reserve's interest rate decision...   (Associated Press)
Traders gather at a post on the floor of the New York Stock Exchange Tuesday, Dec. 11, 2007. Wall Street rose modestly Tuesday as investors awaited the Federal Reserve's interest rate decision and absorbed more fallout from the mortgage and credit crisis. (AP Photo/Richard Drew)
Traders gather at a post on the floor of the New York Stock Exchange Tuesday, Dec. 11, 2007. Wall Street rose modestly Tuesday as investors awaited the Federal Reserve's interest rate decision and absorbed...   (Associated Press)
The facade of the New York Stock Exchange is shown in this Jan. 9, 2007 file photo. (AP Photo/Mark Lennihan, file)
The facade of the New York Stock Exchange is shown in this Jan. 9, 2007 file photo. (AP Photo/Mark Lennihan, file)   (Associated Press)
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