| Citi Hit, Consumer Fears Spark Wall Street Sell Off; Dow Plunges 200
Wall Street has erased its big gains from yesterday's rally after the nation's largest bank reported losing nearly $10 billion and on more worries about the health of the consumer.
Today's Markets
As of 1:53 p.m. EST, the Dow Jones Industrial Average fell 231.68 points, or 1.81% to 12549.24, the Standard & Poor's 500 index fell 31.50 points, or 2.22% to 1384.71 and the Nasdaq Composite Index lost 57.97, or 2.34%, to 2420.02. The consumer-friendly Fox 50 dropped 22.08, or 2.16%, to 1000.08.
Wall Street had been anxiously waiting to hear from the first of three financial companies scheduled this week to give the market the latest damage assessment from investments in risky mortgages that have gone bad.
Also, traders weren't thrilled with economic data painting a picture of a struggling U.S.
Hidden deals distort market
Hidden deals distort market Disguised incentives skew property values as the paperwork no longer accurately reflects what buyers paid. James R. Hagerty and Michael Corkery / Wall Street Journal PARKER, Colo. -- As the housing market slump deepens, disguised discounts are making it harder to tell exactly how much people are paying for homes. Buyers, sellers and other market participants typically monitor fluctuating home values through sale records that legally have to be listed with county clerks. But incentives offered to buyers -- ranging from free cars or furniture to cash rebates -- are making those prices less reliable as a sign of what buyers actually paid, netting out the giveaways. And that may be misleading lenders and people shopping for homes, some real-estate lawyers and appraisers warn.
London shares extend losses midday; miners lower; FTSE 100 falls for ...
But the shares were up 33 pence to 3,396, before falling back to trade 77 lower at 3,286, following Friday's surge. Talk continues that Brazil's Compania Vale do Rio is up for a knockout bid of 90 bln usd, or 47 stg a share. Yesterday, the Observer said Anglo American might bid for Xstrata. In other M&A-related moves, Scottish & Newcastle was 2 lower at 763-1/2, with the Mail on Sunday reporting the company looks set to recommend an 800 pence-a-share takeover by Carlsberg AS and Heineken NV later this week. Moving to the 250 fallers, a broker downgrade hindered Premier Farnell, with Citigroup cutting its stance to 'sell' from 'hold' in a review of the service sector. Shares fell 8-1/2 to 126-1/2. The Electronics distributor also said it has agreed to buy Hynetic Electronics Private Limited, an authorised distributor of Farnell products in India, for not more than 0.5 mln stg in cash this morning.
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