Washington Mutual reports fourth quarter loss of $1.87 billion -- bigger than experts predicted.
(NEW YORK) - Stocks took another big tumble on Thursday, as recession worries grow, Merrill Lynch announces huge quarterly loss, and as the U.S. housing and manufacturing sectors continue to slump.
The Dow Jones industrial average fell over 306 points to 12,159.21, 2.46 percent, its worst one-day point loss since early November. The Nasdaq composite fell 47 points to 2,346.90, 2 percent, and hit a 10-month low.
Federal Reserve Chairman Ben Bernanke earlier in the day told the House Budget Committee that the economic outlook has worsened and that lawmakers should should act quickly and enact a fiscal stimulus plan soon.
Merrill Lynch reported a $10 billion quarterly loss and said it took an $11.5 billion writedown during the quarter related to bad mortgage bets. Washington Mutual is reporting fourth quarter loss of $1.87 billion -- bigger than experts predicted.
The housing starts in December dropped 14 percent to a seasonally-adjusted annual rate of 1.01 million in December, according to the Census Bureau report. The sharpest drop in 27 years. That's down from the 1.17 million reading in November.
CNN Money is reporting that traders are betting that the Fed will cut the fed funds rate, a key short-term interest rate that affects consumer loans, by at least a half-percentage point, at its next policy meeting that ends Jan. 30.
Stocks Fall 300 Points as Recession Worries GrowSalem-News.com