Stocks Dip After Two-Day Spike

Goldman’s success can’t stop dollar jitters
By Jonas Oransky,  Newser Staff
Posted Sep 20, 2007 3:34 PM CDT
Trader Thomas Ferrigno uses his handheld device as he works on the floor of the New York Stock Exchange, Tuesday, Sept. 18, 2007. Stocks rose Tuesday as Wall Street, heartened by upbeat earnings, awaited...   (Associated Press)
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(Newser) – Stocks fell today after two days of bullish investing set off by the Fed’s interest rate cuts; one trader told the Journal profit-taking would have taken its toll "even if there was no news whatsoever.” But there was news: FedEx cut its profit forecast; the dollar continued to hit new lows and the price of oil new highs. The Dow dropped 48.86 to 13,766.7, while the Nasdaq fell 12.19 to 2,654.29 and the S&P slipped 10.28 to 1,518.75. 

Traders showed waning enthusiasm for the financial sector: Even Goldman Sachs’ announcement of a 79% quarterly earnings spike couldn’t keep the bank’s shares from slipping 0.5%. Homebuilders posted five of the top 10 declines in the S&P, Bloomberg reports, after Fed Chairman Ben Bernanke predicted a prolonged housing recession.