The Wall Street sign is seen outside the New York Stock Exchange, March 26, 2009.(Xinhua/Reuters File Photo) Photo Gallery>>>

    NEW YORK, Dec. 15 (Xinhua) -- Wall Street retreated Tuesday, after closing at new highs for the year in the previous session, pressured by higher-than-expected wholesale inflation data.

    According to the Labor Department, November wholesale prices, paid to factories, farmers and other producers, rose 1.8 percent, nearly twice as much as analysts had expected. Core inflation, which excludes energy and food, increased 0.5 percent, the biggest increase in more than a year.

    The New York Federal Reserve said Tuesday the general business index dropped from 23.6 points to 2.6 in December, still a high level but the lowest level since July.

    A separate report from the Federal Reserve showed industrial production, an indicator of the output of mines, factories and utilities, rose 0.8 percent in November, surpassing projections for an increase of 0.5 percent but failed to bolster the market.

    Meanwhile, the U.S. dollar rose as the Federal Reserve met to discuss interest rates. Investors expected the Fed to keep rates unchanged but wanted to get a clue whether the central bank would make a change in its monetary policy next year. The Fed begins its two-day open market committee meeting Tuesday, and will issue its statement Wednesday.

    The dollar rose the highest in two and a half months, as credit concerns in Austria and Greece continue to pressure the euro and other European currencies.

    Confidence in an economic recovery in the U.S. and conjecture the Federal Reserve could acknowledge a rosier outlook also underpinned the greenback.

    After a eight-day falling streak, crude oil rose 1.18 dollars to settle at 70.69 dollars a barrel, in spite of the dollar's rally, on the New York Mercantile Exchange, lifting energy shares to positive area, the only one in all sectors.

    Financials, with a 1.20 percent loss, remained a primary source of weakness for the broader market, dragging the market down.

    At Tuesday's close, the Dow Jones dropped 49.05, or 0.47 percent, to 10,452.00. Broader indexes also went lower. The Standard & Poor's 500 index fell 6.18, or 0.55 percent, to 1,107.93 and the Nasdaq shed 11.05, or 0.50 percent, to 2,201.05.


Dollar rises against major currencies

    NEW YORK, Dec. 15 (Xinhua) -- The dollar rose against major currencies on Tuesday after latest U.S. economic reports boosted expectations that the Federal Reserve will lift interest rates earlier than expected.

    The Labor Department reported on Tuesday that U.S. producer prices index jumped by 1.8 percent month-to-month in November as gasoline and fuels prices spiked. Analysts have forecasted an increase of 0.8 percent. Core producer prices excluding energy and food rose 0.5 percent, the largest increase in more than a year. Full story

Wall Street lacks direction on mixed economic data

    NEW YORK, Dec. 15 (Xinhua) -- Wall Street was seeking direction Tuesday, as investors absorbed mixed economic data.

    The Labor Department said in its report the wholesale prices, paid to factories, farmers and other producers, rose 1.8 percent in November, nearly twice as much as analysts had expected. Core inflation, which excludes energy and food, increased 0.5 percent, the biggest increase in more than a year. Full story

Crude prices rebound above 70 U.S. dollars 

    NEW YORK, Dec. 15 (Xinhua) -- Crude prices rebounded above 70 U.S. dollars per barrel on Tuesday after a nine -straight-day decline.

    Crude prices rose after the Organization of Petroleum Exporting Countries (OPEC) said Tuesday that it expected that the world would consume more crude next year than previous estimates. Full story

OPEC forecasts world oil demand increase for coming year

    VIENNA, Dec. 15 (Xinhua) -- The world oil demand in 2010 would reach 85.13 million barrels per day (mb/d), increasing by 0.82 mb/d, or 0.98 percent compared to this year, according to the forecast made by OPEC in its latest monthly oil market report Tuesday in Vienna.

    The Organization of the Petroleum Exporting Countries (OPEC) has increased the world oil demand by 60,000 barrels a day in the new monthly report in comparison with the monthly report of last month.Full story 


U.S. industrial production rises 0.8 percent in November 

    WASHINGTON, Dec. 15 (Xinhua) -- U.S. industrial production edged up 0.8 percent in November followed an increase of 0.1 percent in the previous month, the Federal Reserve reported Tuesday.

    The November rise in industrial production -- an indicator of the output of mines, factories and utilities, was better than 0.5 percent gain that economists had been expecting. Full story

U.S. wholesale prices rise 1.8% in November 

    WASHINGTON, Dec. 15 (Xinhua) -- U.S. wholesale prices rose by 1.8 percent in November, much more than the 0.8 percent gain that economists had expected, the Labor Department reported Tuesday.

    The rise in the department's Producer Price Index, a measure of inflation at the wholesale level, followed a 0.3 percent gain in October.Full story 

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