Inflation worries once again spelled a downturn in the stock market as a July labor report indicated that the labor market had become even tighter. The labor market is one of the key areas that Federal Reserve Chairman Alan Greenspan and his team focus on when deciding monetary policy. According to a Reuters report:
US Labor Department reported July payrolls and wages rose more than expected, adding weight to the view that the Federal Reserve may raise interest rates.
"It's not surprising," Dick Stein, vice president and chief technical analyst at Boca Raton-based Noble International Investments said of the opening decline. "The sell off is somewhat to be expected."
Much of the tech sector was hit by investors worries that the labor report will almost certainly mean an increase in the interest rates from the Fed. Apple closed at 54 1/8, a loss of 5/8 or 1.14%. Volume was moderate with 3,885,000 shares trading hands.
Apple's PC competitors fared well considering the mood of many traders. IBM, Dell, and Compaq all closed up while Gateway 2000 and Hewlett-Packard both closed down.
The Dow and The Nasdaq both closed down. The Dow closed at 10714.03, a loss of 79.79 while the Nasdaq closed at 2547.97, a loss of 17.86.
The Mac Observer Spin: Apple ends the week above 54 while many aspect of the market have taken some major hits. This means that Apple has been stable since cresting the 50 mark which speaks well of Wall Street's confidence in our favorite company. Not a bad performance.
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