Wall Street Ends In the Red

Updated from 4:16 p.m. EDT

Stocks in the U.S. pulled back Wednesday as negativity about the housing market and the Federal Reserve's latest economic report put an end to a two-day rally for the Dow Jones Industrial Average.

The Dow lost 143.39 points, or 1.07%, to 13,305.47, as only three of the average's 30 components finished with gains. General Motors (GM Quote - Cramer on GM - Stock Picks), Citigroup (C Quote - Cramer on C - Stock Picks) and JPMorgan Chase (JPM Quote - Cramer on JPM - Stock Picks) were among the worst performers.

The S&P 500 was down 17.13 points, or 1.15%, at 1472.29, and the Nasdaq Composite was off 24.29 points, or 0.92%, at 2605.95.

Part of what pinned the market in the red was the 2 p.m. EDT release of the Fed's regional business survey, known as the beige book.

Economic activity continued to expand in most of the nation's 12 districts at a modest or moderate pace in August, the Fed said. Growth slowed, however, in the Philadelphia, Richmond, Dallas and San Francisco regions.

The recent problems in the financial markets were emphasized, with the credit crisis having a dampening effect on the housing sector. Still, the report indicated that much of the trouble had been contained, leaving traders concerned that the Fed might not be moved to cut interest rates.

"Most [banks] reported that the recent developments in financial markets had led to tighter lending standards for residential mortgages, which was having a noticeable effect on housing activity, and several noted that the reduction in credit availability added to uncertainty about when the housing market might turn around," the survey read.

"Outside of real estate, reports that the turmoil in financial markets had affected economic activity during the survey period were limited."

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