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Wall Street drops on rate hike fears.

Tuesday, October 04, 2016 - 01:08

Utilities and telecom stocks led Wall Street lower for a second straight day. Fred Katayama reports.

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Utilities and telecom stocks led Wall Street down for a second straight day. Concerns over the prospects of a hike in interest rates hung over investors minds. Jeff Tomasulo of Vespula Capital: SOUNDBITE: JEFF TOMASULO, CEO, VESPULA CAPITAL, (ENGLISH) SAYING: "When you have rising interest rates, people can put their money somewhere else instead of the higher paying dividend stocks like utilities and telecoms. So I think that's what's weighing on the market." Also contributing to the downdraft: the International Monetary Fund cut its growth outlook for the U.S. economy this year to 1.6 percent from 2.2 percent. Alphabet's Google taking on Apple and Amazon with new hardware. It unveiled a smartphone called "Pixel" that recharges quickly and a voice-activated digital assistant called "Home." Sears shares surged. Bloomberg reports several companies are bidding for the department store chain's Craftsman tool business. Darden shares rose after the owner of the Olive Garden restaurant chain raised its earnings outlook for fiscal 2017. In Europe, a rally in Deutsche Bank shares pulled up the major market indexes.

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Wall Street drops on rate hike fears.

Tuesday, October 04, 2016 - 01:08