RealTime IT News

Bernanke Blasts Bulls

Stocks fell Wednesday after Federal Reserve Chairman Ben Bernanke made it clear that inflation remains a big concern for the Fed.

Bernanke told Congress that core inflation "remains uncomfortably high," disappointing those who thought last week's subtle wording change by the Fed was a sign that the Fed's next move might be to cut interest rates.

Coupled with a weaker than expected durable orders report, it was a tough day for the bulls, with the major indexes shedding 0.8%.

Accenture was a standout, gaining 4% on strong results.

Microsoft was fractionally lower on reports that it might acquire DoubleClick.

Cbeyond climbed 5% on a Raymond James upgrade.

VocalTec fell on its outlook.

The Nasdaq lost 20 to 2417, the S&P 500 fell 12 to 1417, and the Dow lost 97 to 12,300. Volume rose to 3 billion shares on the NYSE, and 2.03 billion on the Nasdaq. Declining issues led by a 21-11 margin on the NYSE, and 20-10 on the Nasdaq. Downside volume was 76% on the NYSE, and 79% on the Nasdaq. New highs-new lows were 113-35 on the NYSE, and 95-55 on the Nasdaq.