Aug 22 - Summary of business headlines: Disappointment on Wall Street as rally fades,:Investors look to Fed Chairman Bernanke to provide catalyst, Gold hits record above $1900; Ford and Toyota will work together to develop hybrid trucks and SUVs. Carmen Roberts reports.
Another disappointing day on Wall Street. After jumping more than 1.5 percent at the open, stocks gave back most of their gains. With four weeks of losses, investors are hesitant to take big risks. Raymond James Financial's Jeff Saut: SOUNDBITE: JEFF SAUT, CHIEF INVESTMENT STRATEGIST, RAYMOND JAMES FINANCIAL (ENGLISH) SAYING: "I think there's panic. I think there's panic after what's happened over the past four to five weeks." With few reasons to buy, many investors are looking for a catalyst from Federal Reserve Chairman Ben Bernanke when he speaks Friday at the Fed's annual conference in Jackson Hole, Wyoming. Saut however, does not expect more help from the Fed -- at least not now. SOUNDBITE: JEFF SAUT, CHIEF INVESTMENT STRATEGIST, RAYMOND JAMES FINANCIAL (ENGLISH) SAYING: "The odds of a recession have gone up about 30 percent. I personally think we're going to miss a recession, but I guess there's always the risk we could always talk ourselves into it." Fear about the sputtering economy sent more investors rushing for the safety of gold. The precious metal rallied 2 percent to an intraday record of more than $1,900 an ounce. But Saut says now is not the time to panic. SOUNDBITE: JEFF SAUT, CHIEF INVESTMENT STRATEGIST, RAYMOND JAMES FINANCIAL (ENGLISH) SAYING: "If you embrace the opinion as I do that we are not going to go into a recession, stocks are a pretty compelling value here. Now I am personally going after the dividend stocks." In other news, Toyota and Ford will work together to develop hybrid trucks and SUVs. They expect to have them on the road by the end of the decade. European stocks ended mostly higher - as investor hope a new political regime in Libya will help restore oil production. Wall Street squeaked out a gain, with financial stocks the biggest drag. Carmen Roberts, Reuters.