Fed expected to hold rates; unemployment jumps, auto sales slump

CBS

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Wall Street is eagerly awaiting the federal reserve's decision on interest rates the Central Bank meets Tuesday and is largely expected to leave short-term rates unchanged at 2% but a growing chorus is predicting a rate hike before Year's End to rain in inflation on Friday a big jump in unemployment and dismal July auto sales figures sent stocks lower the Dow lost 52 points the NASDAQ fell 14 and a half investors will also be looking for economic news this week on personal income and spending Consumer Credit and pending home sales for June and oil remains in the spotlight crude has been falling but at $125 a barrel it is still up more than 20% so far this year and toy safety is going to be put in the spotlight again when President Bush signs a new bill as early as this week it would virtually eliminate lead and six chemicals from toys and require that toys be tested before they're sold the legislation also boosts the consumer product safety commission's budget that agency has been on the hot seat since last year's r of lead related toy recalls that's your money watch log on to cbsnews.com for more in New York I'm Alexis christofis

Dow falls 42 as oil drops; Boscov's files for bankruptcy

CBS

Transcript

add a little cast your wallet the next time you fly jet blue the airline found a way to cut even closer to the bone it's now charging passengers seven dollars for a pillow and blanket part of the company's strategy to offset higher fuel prices those higher fuel costs helped boost inflation in june and with that factored in consumer spending dropped by two-tenths of a percent its week is showing in four months those factors helped bring down another retail victim boscov's department stores filed for chapter 11. the pennsylvania based chain is closing 10 outlets wall street listened to the economic news while keeping an eye on the retreating oil market crude prices dropped more than three and a half dollars a barrel closing at around 121. at the close the dow jones industrials were down by 42 points the nasdaq was off 25. and finally one state's way of coping with the energy crisis utah state workers are now on a four-day work week putting in 10 hours a day instead of eight a thousand state buildings will be closed on friday saving about three million dollars a year in energy costs that's your money watch log on to cbsnews.com for more in new york i'm allison harmelin