29 weeks 2 days 2 hours ago Stock market down for third day in a row Play video

(NECN) - Hannah Montana's concert success and strong performance by theme parks boosted Disney stock 4% Wednesday, the most in two years. Healthy consumer spending, at a time when many investors are worried about the housing market’s effect on spending, could be a good sign.

The market turned south Wednesday after a Federal Reserve official said he would advocate more rate cuts if the economy suffers more than expected, but that the Fed must not ignore inflation risks.

Also, the housing recession continued, as home builder Toll Brothers announced its seventh straight quarterly sales drop. It says, "buyers seem to be hiding. The market's problem is a lack of confidence, not just regarding the direction of home prices, but ... The overall economy."

The Dow lost a half percent Tuesday, on Monday 3%.

Triggering that, a report showing sales at service businesses like health care, hotels, hair salons – the heart of the U.S. economy, declined the most in 10 years.

The stock of JDS Uniphase, which makes fiber optic network equipment, shot up 26% Wednesday, after earnings surpassed expectations. That underscored that profits have grown outside the battered financial services industry.

While 4th quarter earnings reported so far have dropped an average of 23%, if you exclude banks, investment houses and mortgage companies, profit growth is up 18%. Still, money manager, Pran Tiku warns not to focus on the past. He say the “market will

Wall street got some help as 4th quarter productivity rose more than three times what was expected. And the cost of labor -- the greatest financial factor producing goods and services -- rose by just about half expected.

NECN’s Mont Fennel has more.