Will They Spend?

The market indices posted declines for the week. Casting a cloud over Americans’ future spending was another record high hit by oil prices and an indication of higher interest rates from the Federal Reserve as it lifted the key Fed Funds rate by a quarter point on Tuesday. Some big-ticket purchases are already slowing: The National Association of Realtors said sales of existing U.S. homes slipped by a much larger than expected 2.7 percent in August. Adding further gloom to the consumer segment were profit warnings from marketers such as Colgate and Wendy’s. The markets were further rattled by lower revenue forecasts from the semiconductor industry. On the Big Board, Omnicom shares rose 3 percent to close the week at $72.17, while IPG’s stock price was flat, closing at $10.81. WPP, trading as American Depository Receipts on the Nasdaq, was also flat, finishing at $46.21.