Economic reports discourage stock markets by Zuzana Zelenakova

US economy trend is all about low nominal value of American dollar and rising prices of everything else. Customers have to pay more for food, energy, and basically majority of other goods. "The truth is, the price for everything, except for maybe soft goods and electronics, is going up," said Joe Battipaglia, market strategist for Stifel Nicolaus. And to draw the whole picture we should not forget falling house prices. The inflation is on the rise and experts warn the Fed about further severe interest rates cuts that might get things even worse. Wall Street was affected as well. European and Asian markets, having a declining tendency because of the sluggish situation in the US economy, have had the influence over the Wall Street stocks. The discouraging reports on financial and economic situation in the country from Friday practically made it clear that there is no improvement in sight. Dow Jones industrial went down 0.3 percent on Monday morning and finished with 0.6 percent loss. Nasdaq composite fell 0.57 percent. But the weakest were Boeing Co. and Citigroup Inc. stocks. Boeing fell 2.56 percent to $80.67 and Citigroup 2.61 percent to $23.09. Mining and energy companies were the lucky ones on Monday. Massey Energy Co. rose 8.7 percent to $41.60, Harmony Gold Mining Ltd. 8.9 percent to $13.22. And Coeur d'Alene Mines Corp. soared 7.1 percent to $1.08. When it comes to European and Asian stock markets they declined after Friday news. In South Korea the Kospi lost 2.3 percent and the Hang Seng in Hong Kong dropped 3.1 percent.

related story: http://news.yahoo.com/s/ap/20080303/ap_on_bi_st_ma_re/wall_street;_ylt=Av8cuWrfBPMlTXr1DCnvllas0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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