It's all about the lows on Friday. The Dow Jones dropped, U.S. mortgage rates fell, OPEC is worried about low oil prices, and import prices fell. Here is the news of the day for Oct. 10, 2014.
Dow Suffers Biggest Drop in 16 Months
The Dow Jones industrial average plummeted 335 points to 16,659, the biggest triple-digit drop since June 6, 2013. The drop is attributed to renewed concern about global economic growth, corporate earnings and market valuations, USA TODAY reports. In addition to the Dow, Standard & Poors 500 slumped 2 percent to 1,928, The Nasdaq also slid 2 percent to 4,378. Thursday's losses were a 180 from Wednesday, when, inspired by the release of Federal Reserve meeting minutes signaling the central bank’s intention to keep interest rates low, the Dow posted its biggest gain of the year—275 points. The Dow’s slide Thursday was its first three-day move of at least 200 points since August 2011, when the nation's AAA-grade debt was downgraded.
Amazon to Open First Brick and Mortar Store
It’s another miracle on 34th street. The Wall Street Journal reports that E-tail giant Amazon will open its first physical retail store in Manhattan for the holidays. The Manhattan location would function as a "mini-warehouse" for same-day delivery in New York, product returns and pickups of online orders, the Journal said. Amazon, with a line of its own tech products — several Kindle e-readers and tablets, a TV set-top box and new smartphone — could be able to bring its homegrown goods in front of tourists. The store would be located across the street from the Empire State Building and a block east from the site of the flagship Macy’s department store, which figured prominently in the Christmas classic, “Miracle on 34h Street.”
U.S. Mortgage Rates Reach New Low for Year
Average U.S. mortgage rates fell for the third straight week, making it more affordable to borrow to buy a home, the Associated Press reports. Mortgage company Freddie Mac said Thursday that the nationwide average for a 30-year loan fell to 4.12 percent from 4.19 percent last week. The average for a 15-year mortgage, a popular choice for people who are refinancing, also declined to 3.3 percent from 3.36 percent. The 30-year rate is down from 4.53 percent at the start of the year.
Malala Gets Nobel Prize
Malala Yousafzai, the Pakistani teenager who was shot in the head in 2012 for advocating girls rights to education, was awarded the 2014 Nobel Peace Prize Friday, along with Indian children’s rights activist Kailash Satyarthi. Yousafzai, who is 17 years old, became the youngest Nobel Prize winner ever, passing Australian-born British scientist Lawrence Bragg, who was 25 years old when he shared the Physics Prize with his father in 1915. According to the Nobel committee, Satyarthi and Yousafzai were selected for their work against the suppression of children and young people worldwide and their fight for the right of all children to have education. “The Nobel committee regards it as an important point for a Hindu and a Muslim, an Indian and a Pakistani, to join in a common struggle for education and against extremism,’’ the committee said.
OPEC Worried About Oil Prices
The Organization of Petroleum Exporting Countries (OPEC) Friday said forecasts of a warmer winter could drive oil prices down further, just as they begin their usual winter drop. OPEC supplies about 40 percent of the world’s oil. Some weather forecasters are predicting a mild winter, which could drop heating degree days to 12 percent lower than last winter, according to OPEC. Brent oil is trading close to a four-year low Friday, below $90, as supply rises and markets digest more difficult economic news, which creates a lower oil demand.
Import Prices Fall
The Labor Department announced Friday U.S. import prices fell in September for the third straight month thanks to the cost of oil products declining and the strong dollar making it cheaper for Americans to buy goods from the European Union. The Labor Department said import prices fell 0.5 percent in September. Economists polled by Reuters had forecast import prices would drop 0.7 percent. In September, export prices fell 0.2 percent.