U.S. Stocks Retreat, Led by Banks; Fannie, Freddie Shares Drop

July 7 (Bloomberg) -- U.S. stocks fell, erasing a 111-point rally in the Dow Jones Industrial Average, as growing concern over Freddie Mac and Fannie Mae sparked a decline in financial companies that overshadowed an almost $4-a-barrel drop in oil.

Fannie Mae and Freddie Mac, the largest U.S. providers of home-mortgage financing, tumbled to the lowest levels in more than 13 years on speculation they will be forced to raise more capital. JPMorgan Chase & Co. and Bank of America Corp. slid, dragging the S&P 500 Financials Index to a five-year low. Yahoo! Inc. led gains in technology shares that limited the market's retreat after Microsoft Corp. said it may revive talks to take over the operator of the most-visited U.S. Web site.

Source: Bloomberg


Post a Comment

You are welcome to post comments. However, please do not use Anonymous as your ID. At least, put in your initials for easy reference in further conversations.