Citigroup Drags Stocks Down

Banking giant reports $11B in additional losses
By Sam Gale Rosen,  Newser Staff
Posted Nov 5, 2007 3:43 PM CST
A trader works on the floor of the New York Stock Exchange in New York on Monday, Nov. 5, 2007. Stocks fell but regained some ground Monday as a stronger-than-expected reading on the service economy...   (Associated Press)
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(Newser) – Stocks closed down today after Citigroup announced $11 billion more in mortgage-related writedowns, reports Bloomberg. Early heavy losses reversed later in the session as investors calmed down, reports CNNMoney, but none of the major indexes moved into positive territory. The Dow was down 51.7 to 13,543.4, the Nasdaq 15.2 to 2,795.18, and the S&P 500 7.48 to 1,502.17.

"There was a hope in the market that the third-quarter earnings numbers that came out from the financial sector were going to be the beginning and the end of the summer financial crisis," said one strategist. "We're finding that's not the case." Other big financials also fell, and CNBC reported that Morgan Stanley plans a $3 billion writedown.