Dismal Data Depress Wall Street

Overall, import prices fell 9.3% in 2008, the first year the index declined since a 9.1% drop in 2001 and the largest calendar year decline since the index was first published in 1982.

The export price index fell 2.3%, less steep than the 3.4% decline a month earlier. Export prices declined 3.2% in 2008, the first calendar year drop since 2001 and the largest since 1998.

In other data Wednesday, the Mortgage Bankers Association said that the market composite index, a measure of mortgage loan application volume increased 15.8% on a seasonally adjusted basis to 1324.8 for the week ended Jan. 9. The Refinance Index increased 25.6%, its highest level since 2003, while the seasonally adjusted Purchase Index fell 14.1%.

The MBA said the average contract interest rate decreased to 4.89% percent from 5.07% for 30-year fixed-rate mortgages, and decreased to 4.63% from 4.67% for 15-year fixed-rate mortgages.

The dollar was lately weaker against the euro, pound and yen.

In commodities, oil gave up a nickel to settle at $37.28 a barrel, while gold fell $11.90 to settle at $808.80 an ounce.

Overseas, the FTSE in London and the DAX in Frankfurt were both edging lower Wednesday, but Japan's Nikkei Hong Kong's Hang Seng ended in positive territory.