US Consumer Index down

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    Analysts rate this fall as a shocker and attitute it to

    1 increasing unemployment
    2 failures within the financial system
    3 threat of war with Iraq

    There's now pressure on another cut in the interest rate and talk of the 'd' word, depression.

    U.S. stocks sink as consumer confidence drops
    Reuters, 10.29.02, 10:59 AM ET

    By Denise Duclaux

    NEW YORK, Oct 29 (Reuters) - Stocks tumbled in mid-morning trade on Tuesday after a report showed consumer confidence in October scraped its lowest level in nine years, fanning fears that the U.S. economic recovery would sputter out.
    "It spooked the market, because it suggests confidence is actually weaker than we thought and that’s it’s getting harder and harder to make the case consumer spending will hold together," said Hugh Johnson, chief investment officer at First Albany Corp. "This is not a good number."
    Major market gauges deteriorated as the morning progressed. The blue-chip Dow Jones industrial average DJI fell 165 points, or 1.99 percent, to 8,201, the Nasdaq Composite Index IXIC dropped 32 points, or 2.46 percent, to 1,283 and the broad Standard & Poor’s 500 SP lost 21 points, or 2.47 percent, to 868.
    The effect of the consumer confidence report was evident as the major market gauges had been hovering near unchanged before the date was released.
    The Consumer Confidence Index fell for a fifth straight month in October to 79.4, its lowest level since November 1993 and far below the low reached after the Sept. 11 attacks on the U.S. of last year, the Conference Board, a private business research group, said. The drop, from a revised 93.7, was well below consensus forecasts of 89.7.
    Consumer confidence is particularly important to investors since consumer spending underpins about two-thirds of the nation’s economy. The troublesome number landed after a three-week winning streak in the market on a slew of better-than-expected earnings out of companies.

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