
Originally Posted by
[b
Quote[/b] ]U.S. Stocks Have Broadest Drop in 15 Months on Slowing Growth
Oct. 5 (Bloomberg) -- U.S. stocks fell, erasing the Standard & Poor's 500 Index's gain for 2005, after a report showed service companies' expansion slowed more than forecast last month.
Shares of network-equipment maker ADC Telecommunications Inc. and software maker Mercury Interactive Corp. helped lead the decline on disappointing forecasts. Comments from two Federal Reserve governors yesterday that the central bank may keep raising interest rates also weighed on benchmark indexes.
The Fed ``has a history of staying too long in a tightening mode,'' said Thomas Steffanci who helps manage $325 million at Glencrest Investment Advisors Inc. in Claremont, California. ``Right now we're sort of in the sour spot.''
The S&P 500 lost 4.29, or 0.4 percent, to 1210.18 at 10:46 a.m. in New York as all 10 industry groups declined. The Dow Jones Industrial Average fell 24.97, or 0.2 percent, to 10,416.14. The Nasdaq Composite Index retreated 12.60, or 0.6 percent, to 2126.76.
Philadelphia Fed President Anthony Santomero said that the central bank must continue ``shifting'' rates higher to keep inflation in check. Dallas Fed President Richard Fisher said inflation is near the upper limit of a tolerable range.
Policy makers on Nov. 1 will raise rates for the 12th straight time to 4 percent, according to the median estimate of economists in a Bloomberg News survey...