US mkts slips on oil worries

CNBC's Margaret Brennan- USD 5/bbl spike in the price of oil, worries about investment banks and some disappointing technology result all led to the lowest close on the Dow, since September 2006 that’s a tumble of 358 points today. The Nasdaq closed 79 points lower, its biggest drop since January and the worries began on Thursday, when Goldman Sachs warned that there is more weakness ahead for the financial stocks and told its clients to sell Citigroup shares. The bank sold off in reaction, while Citi down more than 6%. Bank of America also announced that it will cut 7,500 jobs as part of its integration of Countrywide Financial.

Goldman Sachs also downgrading General Motors to sell that led GM shares down 10% in reaction to the announcement. An USD 5/bbl increase in the price of oil added to the malaise that the spike in prices came in reaction to a weaker dollar and the prediction from OPEC President that prices could go as high as USD 170/bbl this year.

Not surprisingly consumer stocks continued to tumble with even the discounters like Warner and Target posting declines. On the deal-making front BUD Shares closed fractionally lower but that was before news that Anheuser-Busch rejected InBev takeover offer saying that the USD 46 billion takeover bid is financially inadequate. Watch shares of BUD on Friday to see how they react to news that this takeover will not be happening.

Wall Street action
Lowest close for Dow since Sep 2006; tumble 358 points
Decline led by nearly $5/bbl spike in oil prices
Stks down on worries about invst & disappointing tech results
Nasdaq closes 79 points lower, biggest drop since Jan
Goldman Sachs warns against more weakness for financial stocks
Goldman Sachs asks clients to sell Citigroup shares
Citi down more than 6%
Bank of America to cut 7,500 jobs; shares down over 6%
General Motors down 10%
$5/bbl increase in oil prices on weak dollar
Consumer stocks continue to tumble