Skip navigation


Current DateTime: 11:37:58 08 Feb 2012
LinksList Documentid: 33482595
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...

Current DateTime: 11:37:58 08 Feb 2012
LinksList Documentid: 25124396
Expiration DateTime: 2/8/2012 11:39:56 PM

Current DateTime: 11:37:58 08 Feb 2012
LinksList Documentid: 23452764
Expiration DateTime: 2/8/2012 11:39:24 PM

Current DateTime: 11:37:59 08 Feb 2012
LinksList Documentid: 24355697

MOST SHARED


Current DateTime: 11:37:59 08 Feb 2012
LinksList Documentid: 31330905
Expiration DateTime: 2/8/2012 11:39:45 PM

MOST POPULAR


Current DateTime: 11:38:00 08 Feb 2012
LinksList Documentid: 35819650
    • Super Bowl, Super Bucks

        Whether it's the Patriots or Giants who actually win the game, the business of the Super Bowl is a touchdown either way.

HOT ON FACEBOOK

Stocks Video Gallery
Sean Fenton, Portfolio Manager at Tribeca Investment Partners shares his top stock picks for the Australian market, incl...
Alistair Thornton, China Economist, IHS Global Insight says China's CPI data is definitely higher than expected, but too...
Rob Enderle, Principal Analyst, Enderle Group says Lenovo is well-positioned to compete against companies like Acer and ...
CNBC's Eamon Javers has the latest details on the "STOCK Act", a bill that will prohibit insider trading by members of C...
Gary Shilling, Shilling president, discusses why he thinks the U.S. economy is headed for a recession.
By: Cindy Perman, CNBC.com | 17 Feb 2009 | 05:26 PM ET
Text Size

Stocks tumbled to November levels Tuesday as investors faced a fresh sign of the deepening recession and dilution worries gnawed at bank stocks.

The Dow Jones Industrial Average shed nearly 297.81 points, or 3.8 percent, to close at 7552.60, within one point of its November closing low. (The November intraday low, however, is about 100 points lower.)

The S&P 500 lost 4.6 percent to close at 789.17, and the Nasdaq dropped 4.2 percent to close at 1,470.66.

Major U.S. Indexes
Loading...
Loading...
Loading...

>> Are We Headed for a New Low?

This comes after last week's 5.3-percent drop in the Dow as few details on the execution of the stimulus plan and worries about the potential for wiping out bank stocks weighed on the market. Financials were the week's worst performer, down 10 percent, while health care was the best, down just 2.4 percent.

"Today feels like another shot to the gut," Michael Farr, president of Farr, Miller & Washington, wrote in a guest blog post. But here's the news flash: "It's too late to panic," Farr wrote, suggesting it's time to buy.

"Play defense, but PLAY!" Farr wrote.

The latest sign of the deepening recession came from the New York Federal Reserve, which reported its Empire State manufacturing index fell to a record minus-34.65 from minus-22.2 in January. Economists had expected a much milder decline of minus-24. New orders  fell to an all-time low.

This report from the New York Fed, along with a reading from the Philadelphia Fed later this week, is closely watched as a precursor to the national reading from the Institute for Supply Management, due out in two weeks.

Worries about more bank nationalizations also weighed on investors returning from the three-day weekend after markets were closed for Presidents' Day Monday.

Banks were again one of the biggest drags on the Dow, with Bank of America [BAC  Loading...      ()   ], JPMorgan [JPM  Loading...      ()   ] and Citigroup [C  Loading...      ()   ] all down more than 12 percent.

>> Pros Say: Prepare for More Bank Nationalization

This came amid a fresh wave of bank worries overseas after a report yesterday from Moody's indicated there could be more downgrades of European banks due to their exposure to Eastern European companies and governments and deteriorating economic conditions there. In the UK, Lloyds shares fell for the third straight session as investors worried that the bank will be nationalized.

Adding to the market jitters was news today that the SEC has charged Texas-based Stanford Financial Group with "massive ongoing fraud."

General Motors [GM  Loading...      ()   ] also lost more than 12 percent as the auto maker faces potential bankruptcy and a deadline today to submit restructuring plans to the government as part of its bailout agreement.

Shares of energy giants ExxonMobil [XOM  Loading...      ()   ] and Chevron [CVX  Loading...      ()   ] fell more than 4 percent as crude oil settled below $35 a barrel.

Wal-Mart [WMT  Loading...      ()   ] was the lone gainer on the Dow, climbing 3.7 percent, after the retail giant beat earnings expectations, reporting fourth-quarter earnings excluding items of $1.03 a share; the Reuters consensus estimate was 99 cents a share. The discount chain projects full-year earnings of $3.45 to $3.60 a share.

>> Check the Dow scoreboard to see where all 30 components ended.

Stocks in Europe and Asia fell again, following a G7 weekend meeting accomplished little but the ousting of Japan's finance minister amid accusations he was drunk at a press conference and international criticism of the US stimulus plan.

Deere [DE  Loading...      ()   ] skidded 7.3 percent after Goldman Sachs became the latest brokerage to downgrade its rating on the stock as farmers struggle to get credit.

Elsewhere, another struggling industry, Atlantic City casinos, claimed a victim after Trump Entertainment Resorts [TRMP  Loading...      ()   ] filed for bankruptcy protection.

Sirius XM [SIRI  Loading...      ()   ] shares shot up after Liberty Media agreed to loan $530 million to the struggling satellite-radio provider, saving it from a potential bankruptcy filing.

________________________________________________________________________

Still to Come:

WEDNESDAY: Weekly mortgage applications; housing starts; import/export prices; Fed's Bernanke, Pianalto, Evans speak; industrial production; Fed minutes; Earnings from HP and Analaog Devices
THURSDAY: PPI; weekly jobless claims; leading indicators; Philly Fed survey; weekly oil inventories; Fed's Lockhart speaks
FRIDAY: CPI; Earnings from JCPenney and Lowe's

________________________________________________________________________

More From CNBC.com:

Send comments to .

© 2012 CNBC.com
Tools:
Add This share icon


Current DateTime: 11:14:50 08 Feb 2012
LinksList Documentid: 29778428

Current DateTime: 11:15:33 08 Feb 2012
LinksList Documentid: 29779196

Current DateTime: 11:15:08 08 Feb 2012
LinksList Documentid: 29779197

Current DateTime: 11:15:33 08 Feb 2012
LinksList Documentid: 29779199
CNBCCNBC
About CNBC  |  Site Map  |  Video Reprints   |  Advertise  |  Help  |  Contact
Privacy Policy  |     |  Terms of Service  |  Independent Programming Report
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2012 CNBC LLC.  All Rights Reserved.
A Division of NBCUniversal
Thomson ReutersThomson Reuters