Reply #8: Stocks point to lower open after new high

[ozymandius]

NEW YORK - U.S. stocks pointed to a lower opening Thursday, a day after the Dow Jones industrials closed at a new high, as investors in China sold off stocks amid concerns the country's economy might be growing too quickly.

Stocks fell in China and then Europe following word that growth in China's first quarter jumped a higher-than-expected 11.1 percent and inflation increased at its fastest pace at more than two years. The increases stirred speculation that Chinese officials will take steps such as raising interest rates to curb growth.

While China's sometimes volatile Shanghai Composite Index tumbled 4.5 percent, its decline wasn't as steep as the nearly 9 percent drop Feb. 27 that touched off a worldwide selloff and shaved more than 3 percent from the major U.S. indexes. Stocks fell in Europe Thursday, though at more modest levels than in Asia.

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First-quarter income from Altria, owner of cigarette maker Philip Morris, fell by 21 percent as it saw weakness in domestic cigarette sales. The company raised its full-year earnings prediction, however, which may offset some of the negative news.

http://news.yahoo.com/s/ap/20070419/ap_on_bi_st_ma_re/wall_street