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Wall St. losing streak continues

Thursday, June 09, 2011 - 02:03

June 8 - Summary of business headlines: Sixth losing day for Wall St., Beige Book shows slowdown; OPEC fails to raise output; McDonald's reports lower-than-expected sales; Gap cuts cotton suppliers. Bobbi Rebell reports.

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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL The Dow and S&P made it six days in the red on Wednesday, reacting in large part to Fed Chairman Ben Bernanke's comments a day earlier acknowledging that the economic recovery has slowed, but offering no new stimulus plan. The Beige Book, a summary of economic conditions released by the Fed on Wednesday, confirmed growth slowed in some U.S. regions in May. It pointed to more expensive food and energy as well as supply disruptions tied to Japan's earthquake. Energy shares got a jolt on news OPEC talks in Vienna broke down. Crude oil prices rose to close over $100 a barrel. Ray Carbone of Paramount Options: SOUNDBITE: RAY CARBONE, PRESIDENT, PARAMOUNT OPTIONS (ENGLISH) SAYING: "I think it's not really a surprise that it was difficult for OPEC to come to a consensus agreement here because we had such animosity between the members at this meeting, and at the end of the day they were unable to agree and it was, I understand, a contentious meeting." The White House said it believes oil supply is not meeting demand, but that President Obama has not made a decision about releasing oil from strategic reserves. Separately, a government report showed U.S. crude oil inventories fell more than expected last week. McDonald's reported lower than expected May sales. The company says higher gasoline prices crimped U.S. spending, and economic troubles in Europe hurt business in Germany. Higher commodity prices are impacting Gap. The retail giant says it will cut back on the number of cotton vendors as it tries to rein in soaring yarn and fabric costs. At the close, the major U.S. indexes continued their losing streak, all moving to the downside. In Europe, the banking sector was under pressure on concerns more debt write-offs could be in the pipeline should Greece restructure their debt. The major indexes were all lower. Bobbi Rebell, Reuters.

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Wall St. losing streak continues

Thursday, June 09, 2011 - 02:03