NEW YORK - Fresh signs emerged Tuesday that the U.S. economic slowdown may be intensifying, increasing the odds of a recession:
• Retail sales fell 0.4 percent in December, the worst showing in six months, an indication that consumers reduced Christmas spending amid worries that the housing crisis will worsen, credit will get tighter and the job market may shrink.
• Inventories held by businesses rose by 0.4 percent in November, reflecting big increases in stockpiles held by manufacturers and wholesalers, a sign more layoffs could be in the offing.
• Inflation at the wholesale level fell 0.1 percent last month, a good ending for a year when soaring oil prices sent producer prices surging to a 26-year high of 6.3 percent.
• Bad bets on mortgages led Citigroup Inc. to a record $10 billion quarterly loss. Bank executives are forecasting steeper declines in home prices.
• Stocks slumped and bonds rose, pushing yields lower, as traders bet that demand will drop as recession fears escalate. The Dow Jones Industrials fell 277.28 points, or 2.17 percent, while the S&P 500 shed 35.35 points, or 2.5 percent. The swoon erased Monday's sharp gains and left both indexes down almost 6 percent in the new year.
• Oil futures fell more than $2 a barrel. Saudi King Abdullah politely rejected President Bush's call for OPEC nations to boost oil production, another indication that investors are more worried about slowing demand than rising inflation.
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