US stocks decline, Dow down 143 pts

ALSO READ See how Asian markets are doing

Stocks finished sharply lower yesterday as a jittery Wall Street sold off on a report showing a large drop in pending home sales and read anecdotal data from the Federal Reserve's regional banks as offering little more assurance that an interest rate cut is likely. The Dow Jones industrial average dropped more than 140 points.

Bond prices soared as investors again sought the safety of government debt, sending yields to multi-month lows. The yield on the 10-year Treasury note, which moves inversely to its price, fell to 4.47%, its weakest level since March 14, and down from 4.56% at Tuesday's close.

The National Association of Realtors said pending sales of existing homes fell in July to the lowest level in nearly six years. Though the report did support the argument for a rate cut, it also worried investors who are nervous about the housing market growing so weak that it drags the economy into recession.

The Fed's Beige Book, which describes economic conditions in regions around the country, said that while upheaval in the financial markets has made the housing slump worse, the overall economy hasn't been widely harmed. Wall Street appeared disappointed that the Beige Book's findings didn't deliver a sure-bet for a rate cut, which markets have been pining for.

The Dow ended down 143.39 points, or 1.07%, at 13,305.47, after having fallen as much as 200 points in the session.

Broader stock indicators also lost ground. The Standard & Poor's 500 index fell 17.13 points, or 1.15%, to 1,472.29, and the Nasdaq composite index fell 24.29 points, or 0.92%, to 2,605.95.

A look at how the Indian ADRs performed:

Name Infosys Sify Rediff.com India Satyam Wipro ICICI Bank HDFC Bank MTNL VSNL Dr Reddy's Lab Tata Motors Patni Computer Sterlite Ind

Symbol INFY SIFY REDF SAY WIT IBN HDB MTE VSL RDY TTM PTI SLT

Price 47.88 7.76 15.42 24.93 14.29 44.24 86.37 6.99 19.72 16.18 16.84 24.05 15.85

Change -0.74 0.01 -0.36 -0.43 -0.46 -1.00 -2.13 -0.06 -0.92 -0.10 -0.05 -1.19 -0.14

% Chg -1.52% 0.13% -2.28% -1.70% -3.12% -2.21% -2.41% -0.85% -4.46% -0.61% -0.30% -4.71% -0.88%

Volume 1,510,578 63,318 62,622 532,200 481,400 2,276,100 284,600 97,400 88,000 174,400 710,300 98,300 647,900

High 48.51 7.93 15.70 25.29 15.00 45.21 87.79 7.06 20.17 16.26 16.98 25.10 15.89

Low 47.59 7.62 15.12 24.69 14.25 43.85 85.75 6.83 19.56 15.97 16.80 23.89 15.70

 

 

 

 

 

 

 

 

The dollar was mixed against other major currencies, while gold prices slipped.

Investors' concerns about spreading fallout from market turmoil also intensified after the European Central Bank said it would consider steps to curb recent euro money market upheaval. The statement was a sign the ECB might not lift its benchmark interest rate when it meets Thursday; there had been speculation it would raise the rate a quarter percentage point to 4.25%.

In the US, the Fed has held rates steady for more than a year in a bid to reduce inflation that remains above its comfort level. Investors concerned about a stumbling housing market, rising mortgage defaults and tightening access to credit have been hoping the Fed will reduce its benchmark fed funds rate when it meets Sept. 18.

Declining issues outnumbered advancers by more than 3 to 1 on the New York Stock Exchange, where consolidated volume came to 2.93 billion shares, compared with 2.76 billion shares traded Tuesday.

Crude futures rose 65 cents to settle at USD 75.73 per barrel on the New York Mercantile Exchange.