Indices Slump Toward Weekly Losses
The three major US stock indices were slipping downward as the trade week came to a close, and all were poised to wrap up the last full week of June with losses.
Friday, June 27, 2014 - 00:00
Economic questions struck the world's largest economy, prompting a Fed president to note the central bank might boost borrowing costs earlier than believed. Feuding continues in Iraq, where concerns touch on disrupted supply lines of crude oil and the possible economic effects.
With thse factors, just after 10 a.m. in New York, the Nasdaq had slightly slipped 0.01%, a loss of 0.22 points to 4,378.97; the S&P 500 fell 0.08%, a loss of 1.46 points to 1,955.76; and the Dow fell 0.11%, a loss of 17.72 points to 16,828.41.
Fed official supports rate hike
The US economy is able to sustain an interest rate hike some time next year, St. Louis Fed President James Bullard told a New York audience on Thursday. Bloomberg reports Bullard said he endorses a rate increase early next year, noting growth must continue in the form of job creation and stable inflation. Despite contraction during the first quarter of this year, Bullard forecast gross domestic product will climb 3 percent in 2014.
Noting inflation appears to be stabilizing and driving higher toward where it should be, Bullard pointed out that Fed policy makers' decisions may be impacted by healthy economic figures. But a Bloomberg survey of economists and analysts resulted in predictions for interest rates to increase during the third quarter of next year, when the benchmark level will climb to 0.5%. It presently stands at 0.25%.
Iraqi violence escalates
The US military's armed has dispatched drones airborne over Baghdad, according to CNN. Having begun on Thursday, their purpose is to provide cover for the 180 US military advisors who have arrived in the Middle Eastern nation. President Obama must grant express approval for airstrikes that are not defensive. In another demonstration of escalating violence in the nation, a human rights organization said two mass graves have been discovered in Tikrit, the hometown of former Iraqi leader Saddam Hussein.
The report from Human Rights Watch arrives on the same day Amnesty International published a report noting strong indications about executions by Iraqi government officials in three Northern Iraq cities.
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