Rally Fizzles on Inflation Fears

Comments by Fed official dampen spirits
By Sam Gale Rosen,  Newser Staff
Posted Feb 6, 2008 3:26 PM CST
Despite an early rally, it seems that a bearish mood, represented here by Flocke the polar bear cub, would triumph today.   (Getty Images)
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(Newser) – An early rally fizzled late over inflation fears, and stocks ended down today. The Philly Fed chief raised inflation worries when he said the Fed had to concentrate on "price stability" when considering future rate cuts, the Wall Street Journal reports. The Dow fell 65.03 to 12,200.1, the Nasdaq 30.82 to 2,278.75, and the S&P 10.19 to 1,326.45.

"I guess it's Plosser's day to pour rain on the market today," said one analyst. Stocks had initially risen on lower oil prices and a cheery productivity report. Another glimmer of light was Walt Disney's excellent performance, sending shares of the Mouse surging. "Foreign consumers came and spent money on Disney theme parks, because their currency goes that much further," said an investor.