The markets, and many exchange traded funds (ETFs), were down today on news from Federal Reserve Chairman Ben Bernanke that the housing market continues to dampen the economy. In a speech Monday night, Bernanke said the effects from this summer’s housing market and credit crunch could be felt through the winter, reports Madlen Read for the Associated Press.
The news comes on the heels of oil’s record price above $86 a barrel. Rising home mortgage prices combined with higher oil prices could signal real trouble for many U.S. consumers. Oil continued to climb today, with crude futures closing at a new record price of $87.61 per barrel. In addition, the Dow Jones industrial average and the S&P 500 posted their biggest point drops in five weeks yesterday after Citigroup (C) reported a large third-quarter profit decline. On top of that, Wells Fargo (WFC) fell more than 3% after its third-quarter earnings were less than what analysts had expected. In response to today’s news, the S&P 500 Index dropped 0.7%, the Nasdaq Index fell 0.6% and the Dow Jones industrial average slid 0.5%.
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