US mkts slips on weak earnings concern

CNBC's Bertha Coombs - Concerns about weak earnings and credit was sinking the market averages further into bear territory on Wednesday. The Dow falling 237 points, the S&P 500 sliding 29 points and the Nasdaq tumbling 60 points nearly 3%.

Cisco shares are a big reason of why the tech giant shares hit a 52-week low after analyst UBS and RBC cut their price targets on the networking giant, saying enterprise spending continues to slow in the US. Investors saw safe haven in food and pharma stocks McDonalds, J&J and Merck among the standouts on the Dow.

Financials were once again ground zero for declines Freddie Mac and Fannie Mae plunging on renewed fears about their ability to raise capital. Merrill Lynch shares hit a new low after Fitch put the banks dead on negative watch, saying the risk of additional write-downs and that due in 2009 will make it hard for Merrill Lynch to be profitable. Fitch reaffirms ratings for Lehman, Goldman and Morgan Stanley all were lower in sympathy.

Wachovia lost nearly 8% on the day. The Wall Street Journal reporting a new CEO could be named within days, treasury under Secretary Robert Steel said to be on the short list.