Financials Drag on Markets

Banks and Wall Street brokerage stocks once again dragged the broader stock market lower Wednesday, in a reflection of how credit-market concerns are still driving markets as investors also cope with a weak dollar and record oil prices. Stocks started the day weak, but selling accelerated around midday, and major benchmarks finished near their lows for the session. The Dow Jones Industrial Average tumbled 360.92 points to 13300.02, wiping out all the gains since the Fed's first rate cut September 18. The S&P 500 sagged 44.65 points to 1475.62, while the Nasdaq Composite Index shed 76.42 points to slide to 2748.76. 'There is nowhere to hide,' says Jack Ablin, chief investment officer at Harris N.A. He said that the sell-off of the financials reflects a 'continual spiraling of the credit crisis' due to lack of adequate disclosure. 'We are facing a tropical storm: we know it will hit, but nobody knows how serious it will be,' he said.
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