Stocks Sink on Dollar Instability, Lower Consumer Confidence

In morning trading, the Dow Jones Industrial Average dropped to 1.4 percent to 17,639.56 while the S&P 500 fell 1.2 percent to 2,041.83 as the U.S. dollar rebounded after falling yesterday. Analysts are saying investors are craving stability with the dollar, and that a strong dollar has a negative impact on corporate sales and earnings. Stocks in the retail sector were a sea of red led by Aeropostale Inc, which was down 19 percent after issuing a disappointing outlook after market Thursday. Also dragging down the market is declining consumer confidence. The University of Michigan’s preliminary consumer sentiment index dropped to a four-month low on the notion of weaker income expectations as well as an uptick in prices at the gas pump. In a separate report today from the Bureau of Labor Statistics, economist Stephen B. Reed said falling gas prices over the past year have led to the lowest inflation rate since 2008. “Overall price change was modest in 2014, with the U.S. All Items Consumer Price Index posting its smallest increase since 2008,” Reed said in the report. “This was primarily the result of gasoline prices, which fell sharply over the latter part of the year. However, shelter and food

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