(Agencies)
Updated: 2007-11-08 10:43

Broader stock indicators also pulled back Wednesday. The Standard & Poor's 500 index fell 44.65, or 2.94 percent, to 1,475.62 - moving below the 1,500 benchmark. The Nasdaq composite index fell 76.42, or 2.70 percent, to 2,748.76. For the year, the S&P 500 is up 4.04 percent, while the Nasdaq is up 13.81 percent.

The Russell 2000 index of smaller companies fell 25.81, or 3.22 percent, to 775.96.

A drop in the NYSE composite index proved steep enough to trigger trading curbs, which puts restrictions on certain kinds of sell orders and are meant to help stabilize the market.

Government bonds jumped as investors transferred money from stocks to fixed-income investments. The yield on the 10-year Treasury note, which moves opposite its price, fell to 4.34 percent from 4.37 percent late Tuesday. It was down to 4.30 percent in after-hours trading.

The pullback among the financials made clear the urgency of some investors' concerns about balance sheets.

Washington Mutual Inc. fell after Cuomo stepped up claims that the bank shares blame for inflated home prices nationwide. The bank, which also warned it expects loan defaults to continue in the first quarter at the same pace as in the present quarter, fell $4.19, or 17.3 percent, to $20.04.

Cuomo issued subpoenas to government-sponsored lenders Fannie Mae and Freddie Mac as part of his inquiry into what he regards as conflicts of interest in the mortgage industry. Fannie Mae fell $5.60, or 10.1 percent, to $49.79, while Freddie Mac fell $4.26, or 8.6 percent, to $45.13.

In addition, American International Group fell $4.15, or 6.7 percent, to $57.90 ahead of a quarterly financial report due after the closing bell.

Other financial names fell as well. American Express Co. fell $3.20, or 5.5 percent, to $55.37. Citigroup, which like AIG and American Express is among the 30 stocks that make up the Dow industrials, fell $1.67, or 4.8 percent, to $33.41. Morgan Stanley fell $3.32, or 6.1 percent, to $51.19.

Illustrating investors' unease, the Chicago Board Options Exchange's volatility index, known as the VIX, and often referred to as the "fear index," spiked, jumping nearly 24 percent.

The 13-nation euro hit a fresh record against the dollar - rising to $1.4729 -before falling back. The dollar lost ground following word that a senior Chinese political figure said China should spread its $1.43 trillion foreign exchange reserves beyond the dollar into the euro and other strong currencies.

   1 2 3   

   1 2 3