Financials Drag Dow Down

Good vibes on mortgage deals steady markets
By Jonas Oransky,  Newser Staff
Posted Dec 3, 2007 3:38 PM CST
Traders work on the trading floor of the New York Stock Exchange in New York, Friday, Nov., 30, 2007. Wall Street soared Friday, resuming this week's rally after Federal Reserve Chairman Ben Bernanke...   (Associated Press)
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(Newser) – Bad news in the financial sector today meant the first bearish day for the market in five sessions, as Deutsche Bank’s negative prediction for fourth-quarter earnings pushed Morgan Stanley, Merrill Lynch, and Lehman Brothers downward. The Dow fell 57.15 to 13,314.57, the Nasdaq slid 23.83 to 2,637.13, and the S&P 500 lost 8.72 to close at 1,472.42.

Good vibes from the housing sector buoyed the markets as Treasury Secretary Henry Paulson said the government and top banks would likely reach a deal this week on freezing adjustable mortgages at their initial rates. "Trying to get your arms around all of it is very difficult." one manager told Bloomberg. "I'm more cautious than bullish."