Stocks Creep Up as Inflation Falls

Fed expected to cut yet more
By Kevin Spak,  Newser Staff
Posted Dec 16, 2008 8:44 AM CST
Specialist Nel Gallagher works his post on the floor of the New York Stock Exchange shortly after the market opened and the DOW is heading down Friday, Dec. 12, 2008.   (AP Photo/David Karp)
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(Newser) – Stocks stepped higher at the open today, as investors awaited what many assumed would be an interest rate cut from the Federal Reserve. The Dow rose 77 points, while the Nasdaq and S&P added 1.6% and 1.4% respectively. Investors also learned that inflation took its biggest dive in 61 years in November, as the labor department reported a larger-than-expected 1.7% dip in its Consumer Price Index.

Home construction hit record lows in November, taking its biggest fall in 24 years. Goldman Sachs, meanwhile, reported its first negative quarter since going public in 1999, losing $2.29 billion—but that was within analyst estimates, so shares rose 5%.