Source: Xinhua

05-17-2008 09:28

NEW YORK, May 16 (Xinhua) -- Wall Street fell on Friday as a record-breaking crude oil prices and a 28-year-low consumer confidence overshadowed a surprising jump in new home construction.

Investment bank Goldman Sachs raised its second-half oil price forecast to 141 U.S. dollars a barrel from 107 dollars a barrel Friday, which sent the oil price to a new trading high above 127 dollars a barrel. Investors were plagued that the rising energy price will cut back spending on discretionary items.

In addition, the University of Michigan's consumer confidence gauge for May dropped from 62.6 a month earlier to 59.5, hitting a lowest point since 1980.

Major indexes turned down amid high oil price, denting enthusiasm over better-than-expected housing report. The U.S. Commerce Department said construction of new homes rose in April by 8.2 percent due to an increase in apartment construction. It is the biggest monthly increase in more than two years. Economists had expected a 0.7 percent decline.

The Dow Jones fell 9.53 to 12983.13. Broader indexes were declined. The Standard & Poor's 500 index slightly up 1.22 to 1,424.79 and the Nasdaq fell 4.94 to 2,528.79.

 

Editor:Zhang Jia