Apr 2004 Financial News

US Stocks Plunge, Fears of Interest Rate Hike

Apr 14, 2004

U.S. stocks were down sharply Tuesday after a morning rally fell victim to profit taking and fears of an interest rate hike. Stocks rose at the open after March retail sales trounced estimates with a gain of 1.8%. Analysts attributed the rise to tax refund checks counteracting high gas prices. Exhibiting strength in the morning was financial leader Merrill Lynch which initally rose after it beat expectations on doubling profits. However, after the first half-hour of trading, the market dropped into negative territory and continued to decline for the rest of the session. Investors were concerned that strong economic news might elevate interest rates from their 40 year lows sooner than expected. Accordingly, interest-rate sensitive stocks were amongst the biggest decliners. One of the few winners today were shares of Johnson and Johnson, which traded slightly higher after the drug maker beat earnings estimates and raised its earnings forecast. More Market News

Source: InvestorGuide.com