Comments from the Federal Reserve chairman, soaring oil prices, and earnings from some major companies were all having negative impact on Wall Street Tuesday.
Speaking in New York Monday evening, Fed Chairman Ben Bernanke said he has been pleased with the impact of the Fed’s Sept. 18 rate cuts, but he cautioned that the struggling U.S. housing market has not reached bottom yet and will be a significant drag on the economy into 2008.
Other than Bernanke’s remarks, soaring oil prices were the big story on Monday. As crude soared to new highs above $86 per barrel, there appears to be confusion in the market as to how much of an impact the rising cost of oil is having on the U.S. economy. Speculation that $100 crude may be around the corner has been rampant.
Oil companies such as Exxon Mobil have been rising on the news, but transportation stocks had been falling. Airlines were one industry that has been hurt by the rising price of oil.
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