[NYTr] And the Markets Keep Sinking

[All the News That Doesn't Fit]

sent by Dave Muller (southnews)

AFP - Jul  27, 2007


The US stockmarket has continued its slide, finishing 206 points down at 
the close of trading on Wall Street. Over two days the Dow Jones 
industrial average has tumbled more than 500 points, its worst week in 
nearly five years.


Bruised Wall Street sees more losses; Dow sinks 200 points

NEW YORK (AFP) - - The bruised US stock market slid further Friday as 
investors retrenched on fears of a housing slump and a potential credit 
crunch that led to a massive rout a day earlier.

At the closing bell, the Dow Jones Industrial Average had tumbled 206.55 
points (1.53 percent) to 13,267.02, a day after a stomach-churning 
300-plus point decline for the blue-chip index.

Trading was extremely volatile, with the Dow sinking over 100 points in 
the final 20 minutes.

The tech-heavy Nasdaq composite sank 37.28 points (1.43 percent) to 
2,562.06 while the broad-market Standard et Poor's 500 index lost 23.47 
points (1.58 percent) to a preliminary close of 1,459.19.

Global markets were also weak. In London, the FTSE 100 index of leading 
shares slid 0.58 percent after a 3.15 percent slide Thursday.

Frankfurt's DAX index shed 0.76 percent while the Paris CAC 40 was down 
by 0.55 percent. Both had lost more than 2.0 percent on Thursday.

Wall Street was still licking its wounds from Thursday's massacre amid 
concerns over rising borrowing costs, and investors also mulled a report 
showing the economy grew at a better-than-expected 3.4 percent rate in 
the second quarter.

The latest losses closed a horrific week for US and global markets as 
investors scurried to dump riskier assets.

"There is little doubt that this week's tumultuous events officially 
sound the death knell for cheap money," said Douglas Porter at BMO 
Capital Markets.

"The broader risk is that a now-humbled equity market will knock away 
one of the last props for a beleaguered US consumer. Already burdened 
with sagging home prices, high energy costs and a puny savings rate, 
households are highly vulnerable to an added shock. This may prove to be 
just such a shock."

Intel shed 25 cents to 23.75 after the European Union's top regulator 
leveled formal antitrust charges against the world's biggest computer 
chip maker, on suspicion that it had abused its dominant market 
position. Intel rival Advanced Micro Devices failed to benefit from the 
event, losing 55 cents to 14.18.