Recessionary Fears

Increasing oil prices and a widening trade deficit sent stocks lower last Friday, erasing modest gains made earlier in the week. According to the Department of Commerce, the deficit hit $58.8 billion in June, up more than 6 percent over May’s $55.4 billion. The news, coupled with rising oil costs and an uptick in interest rates, sparked recessionary fears among investors. Despite the fears, the markets remained relatively flat, with the Dow ending the week at 10,660.31, up 42.28 points (0.4 percent). The Nasdaq finished at 2156.90, down 21.01 points, (nearly 1 percent). In advertising stocks, Omnicom declined nearly 0.6 percent to finish at 83.67 (down 0.49 points). Interpublic Group closed at 11.94, down 0.20 percent (1.6 percent). WPP Group, trading as American Depository Receipts, finished down 0.37 points (nearly 0.7 percent) to close at 53.22.