Dow jumps 187 on strong retail sales, best day in a year
CBS News
Transcript
[Music] The bulls were back on Wall Street as investors put fears of higher interest rates on the back burner and focused instead on a big jump in May retail sales. The report showed consumers are still spending despite rising gas prices and falling home prices. The Dow ran up 187 points, its biggest one-day gain in nearly a year. The Nasdaq rallied 32. But inflation is back in the spotlight today with a report on inflation at the wholesale level. How much of your income is spent on housing? According to a Harvard University study, too much. 17 million American households were spending more than half their income to pay for housing in 2005. That's 3 million more than in 2001. Experts say if mortgage rates continue to rise, it could cause more problems for families already struggling to make ends meet. Meanwhile, the Federal Reserve is considering banning some mortgage lending practices that fueled the recent boom in the housing market. Among the practices it's looking to stamp out, prepayment penalties and a major setback for a diet pill. An FDA advisory panel said it could not recommend the weight loss drug Ramanat to the agency because its manufacturer failed to demonstrate its safety. The drug, which is already marketed in Europe, was found to increase the risk of suicidal behavior. That's your money watch. Log on to cbsnews.com for more business headlines in New York. I'm Alexis Christopherus.