New York – Wall Street extended its decline Thursday, dipping lower after the Labor Department said productivity was flat in the third quarter while wages rose nearly 4 percent. The data touched off concerns that the Federal Reserve will continue to wrestle with inflation, possibly raising interest rates again.
The Dow Jones industrial average posted its first five-consecutive-day decline since June 2005 following the economic news and amid mixed reports from retailers on October sales, including Wal-Mart Stores Inc., which had disappointing results last month and warned that November sales would also come in below expectations.
The economic data, which showed that wage pressure was increasing at the fastest rate in more than 20 years, rattled investors who have grown concerned that the economy might be cooling too quickly. Wall Street wants a gradual slowdown so the Fed will cut interest rates.
One market observer wasn’t worried, noting that the decline was modest.
“In the grand scheme of what’s happened today and this week, I’d say the markets are hanging in there,” said Brian Williamson, an equity trader at the Boston Company Asset Management.
The Dow, which fell below the 12,000 benchmark during the session, closed down 12.48, or 0.10 percent, at 12,018.54.
Broader stock indicators also declined modestly. The Standard & Poor’s 500 index fell 0.47, or 0.03 percent, to 1,367.34, and the Nasdaq composite index declined 0.33, or 0.01 percent, to 2,334.02.
Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.60 percent from 4.57 percent late Wednesday. The dollar was mixed against other major currencies, while gold prices rose.
Light, sweet crude fell 83 cents to $57.88 a barrel on the New York Mercantile Exchange.
