Issue link: https://www.epageflip.net/i/152130
8B Daily News – Thursday, August 15, 2013 Furniture Depot 235 So. Main St., Red Bluff 527-1657 MON.-FRI. 9:00-6:00 SAT. 9:00-5:00 • SUN. 11:00-5:00 Extra $300 Gift Certificate on all Temperpedic Mattress Sets U.S. stocks fall as economists expect Fed to scale back stimulus NEW YORK - U.S. stocks fell Wednesday, sending the Standard & Poor's 500 index lower for the sixth time in eight days, after economists predicted the Federal Reserve will reduce stimulus in September as European data added to signs that the global economy is strengthening. Macy's fell 4.5 percent as the department-store chain cut its profit forecast after weaker-than-estimated sales. Homebuilders and utility stocks slumped amid rising bond yields. Apple rose 1.8 percent, extending a rally after billionaire investor Carl Icahn said Tuesday he's a shareholder. The S&P 500 lost 0.5 percent to 1,685.39, the lowest level since July 29. Wall Street The benchmark gauge has dropped 1.4 percent since a record high on Aug. 2. The Dow Jones industrial average declined 113.35 points, or 0.7 percent, to 15,337.66, the lowest since July 10. About 5.4 billion shares changed hands on U.S. exchanges, 14 percent below the three-month average. "The market is scopelocked on Fed tapering in September," Douglas Cote, chief market strategist at ING U.S. Investment Management in New York, said in a telephone interview. His firm oversees $190 billion. "Quantitative easing is creating some excess in the financial system. The last thing Bernanke wants when he finishes his term is to be responsible for the next bubble." The S&P 500 has fallen from a record high this month on growing speculation the Fed will pare stimulus, or quantitative easing, this year. Central bank stimulus helped propel the S&P 500 up more than 150 percent from its bear-market low in 2009. The Fed, led by Chairman Ben Bernanke, will probably reduce its $85 billion in monthly bond purchases at its meeting on Sept. 17-18, according to 65 percent of economists surveyed by Bloomberg from Aug. 9 to Aug. 13. In a survey last month, half of economists predicted a reduction at next month's meeting. A report Wednesday showed wholesale prices in the U.S. were little changed in July, reflecting the biggest drop in auto costs in four years. Fed policy makers continue to see inflation running below the central bank's 2 percent goal even as the expansion Sierra Sound NEW & USED CD's Special Orders Avail. Car Stereo Sales - Service Installation We make house calls! 226 So. Main St., Red Bluff 527-3735 picks up in the second half of the year. Separate data showed the euro area's economy emerged from a recordlong recession in the second quarter, led by Germany and France. Gross domestic product expanded 0.3 percent after a 0.3 percent contraction in the first quarter, the European Union's statistics office said. Fed Bank of St. Louis President James Bullard, who has backed continued bond purchases by the Fed, said policy makers should be careful in changing course based solely on their economic forecasts, which have proven in the past to be too rosy. Federal Open Market Committee forecasts "have tended to be too optimistic over the last several years," Bullard, who votes on monetary policy this year, said Wednesday in the text of prepared slides for a speech in Paducah, Ken. "Given this experience, I think caution is warranted in taking policy action based on forecasts alone." KWIK KUTS Family Hair Salon 20 % off ANY RETAIL PRODUCT with any chemical service of $50 or more 200 Regular $ Haircut off Reg. $13.95 Not good with other offers Expires 8/31/13 With coupon 1064 South Main St., Red Bluff • 529-3540 Kyla at (949) 342-1777, or Marcy at 1-800-888-9040 (Toll Free)