Stocks Climb As Investors Hope For Rate Cuts
Wall Street gave up early gains Tuesday as investors still hoping for an interest rate nonetheless struggled with the ongoing fallout from the mortgage and credit crisis.
The National Association of Realtors said Tuesday its index tracking pending U.S. home sales fell 2.6 percent in November, a larger decline than the market expected. The housing market has been the main drag on the economy recently, and is one indicator the central bank is watching to gauge the likelihood of a recession.
The housing market report followed last week's disappointing readings on employment and manufacturing. The stock market has been attempting to recover from sharp losses in the first few days of trading in 2008 on the expectation that the Fed will continue its campaign of rate cuts to prevent the U.S. economy from slipping into a downturn.
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AP | Madlen Read | January 8, 2008 12:05 PM