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Stocks Plunge on Dismal Banking, Housing News

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Stocks Plunge on Dismal Banking, Housing News

Economy

Stocks Plunge on Dismal Banking, Housing News

Stocks Plunge on Dismal Banking, Housing News

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  • <iframe src="https://www.npr.org/player/embed/16452572/16451004" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

Gloomy news from the banking sector and a bleak outlook about the housing industry sent stocks reeling. The major stock market indexes each fell more than 1.5 percent, with the Dow Jones industrial average sinking more than 200 points.

RENEE MONTAGNE, host:

The market is rebounding this morning, but Citigroup's troubles bled into the markets yesterday. The Dow Jones Industrial Average fell more than 200 points to its lowest close in months.

NPR's Wendy Kaufman reports.

WENDY KAUFMAN: Concerns about the banking industry put Wall Street in a foul mood. A major investment firm cut its price target for shares of Merrill Lynch. It was a grim reminder that the full scope of the mortgage and credit market fallout is not yet known. Housing stocks, airlines and automakers were also hit hard. Indeed, all the major indexes fell markedly yesterday, with the Dow off 218 points.

Jim Jelter is an editor at MarketWatch, which is owned by Dow Jones.

Mr. JIM JELTER (Industrials Editor, MarketWatch): What we're hearing from the analyst on Wall Street is that there's room for it to go down further. We just don't know when we're going to hit the bottom.

KAUFMAN: Wall Street continues to be nervous about consumer confidence and spending for the holiday season, which officially starts on Friday. Consumers watching the value of their 401Ks and their houses diminish aren't likely to spend with abandon.

Wendy Kaufman, NPR News.

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