Investors Fret Over Signs Of Rising Prices

Economy

Economic news gave financial markets a big boost at the start of the week, but reports hinting at higher inflation rates had nearly wiped out those gains by Friday.

The Dow Jones industrial average fell 16.21 Friday to 8,045.21 as investors fretted about a surprisingly large jump in wholesale prices. Friday’s loss shaved the Dow’s gain for the week to 6.63 points.

In reports this week:

The Labor Department said the number of U.S. workers filing for unemployment benefits unexpectedly fell by 5,000 in the week ending Oct. 4 to a seasonally adjusted 304,000. That’s the lowest level in nine weeks, the department said, and follows a rise of 3,000 claims in the previous week to 309,000. Claims have held below 310,000 for four weeks now - the longest sustained period at that level since the first five weeks of 1989.

The nation’s biggest retailers said sales slid last month, hurt by unseasonably warm weather and the funeral of Princess Diana.

Retailers who reported their monthly sales figures Thursday said higher-than-normal temperatures in September stifled demand for new fall merchandise. Hardest hit were apparel merchants as consumers delayed purchases of wool sweaters and winter coats.