This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks on Wall Street Continue Sliding

Updated from 9:39 a.m. EST

Stocks on Wall Street were in a slump Tuesday morning, as financial firms were working to accommodate strains on homeowners, U.S. automakers fumbled for answers to a stark business outlook and corporate earnings statements remained lackluster.

The Dow Jones Industrial Average lost 237 points to 8633, and the S&P 500 fell 26 points to 893. The Nasdaq gave back 40 points to 1577.

Among stocks in the news, Citigroup (C - Get Report) said it would alter terms for mortgages to avoid foreclosure proceedings on as much as $20 billion in at-risk home loans. Last Friday, JPMorgan Chase (JPM - Get Report) announced a similar mortgage-refinance program, covering $110 billion in loans.

Bloomberg also reported that government-controlled mortgage companies Fannie Mae (FNM) and Freddie Mac (FRE) were planning similar mortgage-restructuring initiatives.

The decision by big banks to refinance mortgages is about a year overdue, said Michael Church, portfolio manager at Church Capital. Although it's much cheaper for banks when they avoid foreclosing on homes, securitization of mortgages has made it difficult to find out who the end-borrowers and the end-lenders are. "With things on a massive scale like this, I'm not surprised it has taken a year," he said.

Meanwhile, credit card company American Express (AXP - Get Report) got the go-ahead from the Federal Reserve to turn itself into a bank holding company. Such a move would allow American Express to build a deposit base and secure Fed funding.

Goldman Sachs (GS - Get Report) and Morgan Stanley (MS) had earlier this year successfully petitioned the Fed for bank holding company status.

Separately, the Los Angeles Times reported that Goldman Sachs had been encouraging its clients to bet against California bonds even as it was collecting fees to help California sell the same bonds.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AXP $74.94 0.00%
C $51.75 0.00%
GM $29.21 0.00%
GS $184.51 0.00%
JPM $62.57 0.00%

Markets

Chart of I:DJI
DOW 16,351.38 +293.03 1.82%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs