Issue link: https://www.epageflip.net/i/132068
8B Daily News – Thursday, May 23, 2013 Mattress Closeout on select and Simmons Beautyrest Queen Mattress Sets FURNITURERed Bluff DEPOT 235 So. Main St., 527-1657 limited to stock on hand MON.-FRI. 9:00-6:00 SAT. 9:00-5:00 • SUN. 11:00-5:00 50% off Stocks fall on news Fed weighed cutting stimulus NEW YORK (AP) — The Federal Reserve took financial markets for a ride Wednesday, pushing stock prices up in the morning then sending them down in afternoon. Prices surged on congressional testimony by Fed chairman Ben Bernanke early in the day that suggested the central bank would not end its massive economic stimulus program any time soon. But then minutes of a Fed meeting were released suggesting the stimulus could be scaled back as early as next month if the economy picks up, and stocks began dropping fast. The Fed minutes showed that some policymakers favored tapering a bond-buying program. That prompted traders to dump U.S. government bonds, sending their interest rates, or yields, higher. The yield on the benchmark 10-year Treasury note rose above 2 percent for the first time since March 14, to 2.03 percent from 1.93 percent the day before. Wall Street The Fed is buying $85 billion worth of bonds every month as part of its stimulus program. That has kept interest rates low and encouraged investors to put money into stocks and other riskier assets instead of bonds. If the Fed slows down its bond purchases, investors fear, it could lead to an outpouring of money from the stock market and back into bonds. The Dow Jones industrial average ended the day down 80.41 points, or 0.5 percent, to 15,307.17. Earlier, the index had risen as much as 154 points after Bernanke started speaking to lawmakers. ''If you had any doubts about the influence of the Fed, you only have to look at the roller coaster that followed Bernanke's testimony this morning and the release to Fed minutes this afternoon,'' said David Kelly, chief global strategist at J.P. Morgan Funds. The minutes of the April 30-May 1 meeting showed that ''a number'' of members expressed a willingness to scale back the Fed's bond purchases, perhaps as soon as June, if the economy accelerates. The Fed next meets June 18-19. The Standard and Poor's 500 fell 13.81 points to 1,655.35, a decline of 0.8 percent. Earlier in the day, Bernanke had told lawmakers it was too soon for the central bank to pull back on its stimulus programs. Investors were also encouraged by news that sales of previously occupied U.S. homes rose last month to the highest level in three and a half years. ''It's up, up and away,'' said Stephen Carl, head of stock trading at the Williams Capital Group, as stocks were soaring shortly after Bernanke stopped speaking. In addition to buying bonds, the Fed has been keeping short-term interest rates near zero to encourage people and businesses to borrow and spend more. The Russell 2000 index of small-company stocks fell 16.52 points to 982.26, a loss of 1.7 percent. The Nasdaq composite was down 38.82 points at 3,463.30, or 1 percent. In addition to stimulus from the Fed, other factors have been pushing the stock market higher, including a rebounding housing market, a pickup in hiring and strong earnings at big U.S. companies. On Wednesday, S&P Capital IQ reported that earnings in S&P 500 companies had reached a quarterly record. Investors don't like when the Fed pulls back from stimulus policies and raised interest rates because it typically has slowed the economy, and has even led to recessions. But JPMorgan's Kelly notes that when interest rates are very low like now, history suggests interest rates hikes won't hurt the stock market that much because it means the economy is getting stronger. ''I don't think that (higher) interest rates will prove bad for the stock market,'' he said. ''But the stock market has been hypnotized into believing that the only thing keep it afloat is the Fed.'' On Tuesday, stocks rose after James Bullard, president of the St. Louis branch of the Federal Reserve, told an audience in Germany that the central bank should continue buying bonds. The price of gold fell $10.20 to $1,367.40 an ounce, a drop of 0.7 percent. Crude oil fell $1.90 to $94.28 a barrel on the New York Mercantile Exchange. AAA: 31.2M drivers to take Memorial Day road trip (AP) — It's going to be another busy Memorial Day weekend on the nation's highways. From Thursday through Monday, 31.2 million Americans will drive 50 miles or more to a beach, campground or other getaway, according to car lobbying group AAA. That's a small RUNNINGS ROOFING All makes and models. We perform dealer recommened Member Discount 30K, 60K, 90K SERVICES AT LOWER PRICES Smog Check $ starting at 95 $ 25 + 8 certificate 25 (MOST CARS & PICK-UPS) 527-9841 • 195 S. Main St. increase from last year but still well short of the record 37.3 million people who drove during the holThe Over 25 years of experience Tony & Carmen Kelley STOVE JUNCTION BBQ PELLETS "No Job Too Steep" " No Job Too Flat" 22679 Moran Road Corning, Ca 96021 Popular customer request Serving Tehama County No Money 530-824-2195 Sheet Metal Roofing Residential Commercial • Composition • Shingle • Single Ply Membrane 530-527-5789 530-209-5367 CA. LIC#829089 Down! FREE ESTIMATES Owner is on site on every job The North State's premier supplier of stoves Fax: 530-824-0748 Now in Stock! Serving Butte, Glenn & Tehama Counties Tues-Sat 9am-5pm • Closed Sun & Mon 22825 Antelope Blvd., Red Bluff 530-528-2221 • Fax 530-528-2229 www.thestovejunction.com iday in 2005. Gas will cost slightly more this year. The national average price for a gallon of gasoline has risen 7 cents in the past week to $3.66 and could increase over the weekend. Gas averaged $3.64 last Memorial Day. Still, the price isn't expected to reach the 2011 Memorial Day average of $3.79. The total number of holiday travelers should decline almost 1 percent to 34.8 million, AAA says, because fewer will choose to fly. AAA estimates that 2.3 million travelers will take to the skies, down 8 percent from last year. ''American travelers are experiencing fee fatigue and frustration with everything from higher fares to airport security. As a result, many are choosing road travel,'' Robert L. Darbelnet, CEO of AAA, said in a statement. The airline industry's lobbying group — Airlines for America — said it expects a typical Memorial Day weekend and sees overall summer traffic increasing by 1 percent. I-5 TIRE FACTORY Stromer Realty Specializing in Farms and Ranches 590 Antelope Blvd Red Bluff (530) 527-3100 Trust what you love to Tire Factory Always the right tire, Always the right price. Now accepting Goodyear credit card. Call for details. T: 530 529-0797 1375 Montgomery Rd. Red Bluff, CA