Wall Street slumps at the openInvestors' rate jitters intensify after a government report shows productivity slowing amid a growing economy, an inflationary signal that could mean rate hikes are coming.NEW YORK (CNNMoney.com) -- Stocks extended their selloff Wednesday as the latest government reading shows productivity slowed in the first quarter, creating more anxiety that rate hikes could be on the way. The Dow, Nasdaq and S&P 500 fell further into the red in the first moments of trade. Worker productivity in the first quarter was much lower than original estimates, according to a government report Wednesday that was in line with the latest Wall Street expectations. The slower productivity raised inflation concerns, and could keep the Federal Reserve from moving to cut rates to spur the economy. In corporate news, online brokerage TD Ameritrade Holding (Charts) announced late Tuesday that hedge funds JANA Partners and S.A.C. Capital Advisors have revealed that they have an aggregate "economic interest" in about 8.4 percent of its shares and that they want the company to pursue a merger. |
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