Stocks Slide Amid Surge in Crude Oil Prices
Stock futures fell today in the face of record crude oil prices and the rising concerns about the negative effects that higher energy costs may have on consumers and corporate profits. A barrel of U.S. crude for November delivery rose to $87.97 in electronic trade due to Middle East tension.
Noted Andre Bakhos, president of Princeton Financial Group in Princeton, New Jersey, "Oil prices nearing the century mark are causing jitters as to what it means in terms of the consumer." This, added to Federal Reserve Chairman Ben Bernanke's comment that the housing slump will likely exert a significant drag on U.S. economic growth into early next year, are combining for a cautious tone. "There are just many concerns, the dollar, oil, the credit squeeze and issues about the consumer. Is he alive or dead?" said Bakhos.
S&P 500 futures fell 7.2 points and were below fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures slid 60 points, and Nasdaq 100 futures shed 13 points.
Last night, Bernanke said financial markets were healthier since the turbulence in mid-August but a full recovery will take time.
Published on October 16, 2007
Are you retail Agent Looking for a Quote?