Wall Street slid today as downbeat news from JPMorgan Chase & Co. and other financial companies increased the market's nervousness about...
NEW YORK — Wall Street slid today as downbeat news from JPMorgan Chase & Co. and other financial companies increased the market’s nervousness about the continuing impact of the credit crisis on the economy.
The Dow Jones industrials fell 139.88 to 11,642.47. The Standard & Poor’s 500 index fell 15.73 to 1,289.59, and the Nasdaq composite index fell 9.34 to 2,430.61.
Microsoft, one of the 30 Dow stocks, added 22 cents to $28.12, and Boeing, another Dow stock, lost 69 cents to $65.93.
The latest reminder of continuing troubles for banks and brokerages came when JPMorgan said late Monday it has incurred wider losses in its mortgage holdings so far in the third quarter than in the second quarter. The nation’s second-largest bank by assets said in a regulatory filing it lost $1.5 billion, after hedges, in its mortgage-backed securities and loans this quarter, compared with $1.1 billion in the second three months of 2008.
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The losses were proof to investors that the financial sector’s problems appear to be nowhere near a resolution.
The market’s losses were mitigated for part of the session by a drop in the price of oil — an illustration of the ongoing push-and-pull in the market between oil prices and any news about financials.
Oil trading was buffeted by several factors: differing views on whether global demand is falling or rising, and word from BP that it had shut down an oil pipeline that runs through Georgia as a precautionary measure due to the fighting between Georgian and Russian troops. Light, sweet crude settled down $1.44 at $113.01 a barrel on the New York Mercantile Exchange.
Oil has fallen more than $30 from its July 11 high of $147.27, easing concerns on Wall Street about inflation — but today, the anxiety over the financial sector overwhelmed any relief about oil prices.
“Some of the big bellwether financial-services companies are precipitating the correction that we’re seeing,” said Phil Orlando, chief equity market strategist at Federated Investors of today’s retreat by stocks. Still, he said the run-up in stocks since oil began falling last month has made occasional retrenchments not unexpected.