Wall Street slide below 11000

CNBC'S Courtney Reagan - It’s been a tumultuous day on Wall Street as stocks slip between gains and losses and all eyes in portfolios focused squarely on the US economy. The Dow finished 40 points below 11,000 but the Nasdaq managed modest gains. Economic worries sent the price of oil plunging to its biggest dollar drop since 1991, down USD 10/bbl at one point during the trading day. Crude ended the day down USD 6.5/bbl closing over USD 138/bbl. Capitol Hill hosted some of the markets most influential voices as Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson justified before the Senate Banking committee.

Bernanke noted his concentration on the market’s dual problems, a sluggish growth and rising inflation. While most of the Fed Chairman’s comments were more worrisome, financial stocks did rally on his assurance that the banking system remains well-capitalized. Treasury Secretary Henry Paulson’s turned heat on the Senate Banking Committee, the odds remain low that the backup plan developed for the Freddy Mac and Fenny May will actually be used.

GM Plans to raise USD 15 billion in the equity buying, new cost cutting measures that includes the sale of assets as well as the suspension of dividends and laying-off some of its salaried workers. The silver lining today has to be positive earnings announcements from both Johnson & Johnson and Intel, both companies reporting revenues beating Wall Street’s estimates.

Wall Street action:

Tumultuous session on Wall Street
Dow finishes at 10,963; Nasdaq manages modest gains
Biggest dollar drop in crude since 1991; down $6.50/bbl, near $139/bbl level
Some financial stocks rally on Bernanke's statement that banking system is well capitalized
Paulson says that odds are low on the plan to rescue Freddie and Fannie being actually used
GM to raise $50 billion in liquidity through cost-cutting
Positive earnings announcement from Johnson & Johnson and Intel