Stocks slide as oil near $130 fuels inflation concerns

Date: Tue, 20 May 2008 17:04:49 -0400

Stocks slide as oil near $130 fuels inflation concerns

Stocks tumble sharply, as oil near $130 a barrel fuels concerns that
surging commodities prices will further crimp U.S. consumption, while an
official signals the central bank may be done with cutting interest
rates to boost the economy.

Futures Movers: Crude ends above $129, tallies three-session gain of 4%

Crude-oil futures travel to a new record high above $128 a barrel after
Monday's record high close, as investors bet that increasing demand will
exceed supply, despite increased production by Saudi Arabia.

Economic Report: Producer prices rise tame 0.2% in April

Wholesale prices rose a smaller-than-expected 0.2% in April after
seasonal adjustments, with food prices flat and energy prices falling,
the Labor Department reports.

The Fed: Fed wants to pause from rate cut campaign, Kohn signals

Interest rates are now low enough for the Federal Reserve to pause and
take a wait-and-see stance in coming weeks, influential Fed Vice
Chairman Donald Kohn says, but it might not be easy for the central bank
to take a break for long.

Senate panel approves housing rescue bill with little opposition

The Senate Banking Committee approves legislation to help the ailing
housing market and impose tougher rules on mortgage-finance giants
Fannie Mae and Freddie Mac; bill now moves to Senate floor where passage
is expected.