Global growth worries rattle Wall St, Dow rises

NEW YORK - The S&P 500 and the Nasdaq fell on Wednesday as signs of increasingly sluggish growth in the United States and the rest of the world rattled investors already unsettled about the outlook for consumer spending and corporate profits.

The Dow eked out a modest gain, however, helped by Home Depot. The home improvement retailers' shares rose 4.5 per cent after its chief executive said the battered US housing market's decline may be nearing an end.

And General Motors Corp, another Dow component, said it thinks it has seen the bottom of the downturn in the auto industry, as well as indications that the housing market is near bottom.

Shares of wireless companies fell, weighing on the Nasdaq, after comments from mobile chipmaker Qualcomm's chief executive and JPMorgan analysts fueled concerns that the demand for cell phones is slowing.

A continued decline in the price of oil failed to spark optimism, with investors instead calling it yet another symptom of slowing global demand.

The Federal Reserve said in its Beige Book report that economic activity has been slow across most of the United States in recent weeks, though there has been some relief from high commodity and energy prices.

The Dow Jones industrial average rose 15.96 points, or 0.14 per cent, to 11,532.88, while the Standard & Poor's 500 Index dropped 2.59 points, or 0.20 per cent, to 1,274.99.

The Nasdaq Composite Index was down 15.51 points, or 0.66 per cent, at 2,333.73.

European data showed that falling investment and private consumption led to the first-ever quarterly contraction in the euro zone economy, fueling fears of a recession in the region.

Source: Singapore Business Times - 04 Sep 2008