Ted Weisberg, floor trader with Seaport Securities, was less dire. "Like getting a cold or whatever it happens to be ... sometimes you just have to let things run their course," he said. Fear has gotten a hold of the market and emotion is driving the market.
Stocks eventually will be oversold if they haven't reached that level already, said Weisberg. "Unfortunately, they don't ring a bell and tell us when we're going up," he said. "Market conditions like this create more opportunities than you can shake a stick at. You just have to have a little patience."
On the home-loan front,
Bank of America
(BAC - Get Report) announced it would modify about 400,000 mortgages to help borrowers who had taken out loans from
Countrywide Financial, which BofA acquired on July 1.
(HIG - Get Report) said it garnered a $2.5 billion investment from
Allianz, is reducing its dividend and will register a third-quarter loss.
Outside the financials,
agreed to a merger with
Among technology stocks,
online auctioneer eBay
(EBAY - Get Report)
said it would be cutting its staff by 10% and would buy online payment processor Bill Me Later.
In the commodities space, the price of crude oil was down $3.53 to $90.35 a barrel, and gold was climbing $42.10 to $875.30 an ounce.
Longer-term U.S. Treasury securities were climbing in price. The 10-year was up 22/32 to yield 3.52%, and the 30-year was climbing 1-20/32, yielding 4%.
Overseas markets were broadly falling. The FTSE in London and the Dax in Frankfurt were each down more than 5.8%.
, including Japan's Nikkei and Hong Kong's Hang Seng, closed on the downside.