Stocks Fall on Credit Worries

JPMorgan says earnings will drop at big brokerages
By Sam Gale Rosen,  Newser Staff
Posted Dec 4, 2007 3:39 PM CST
The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs, is shown in this June 12, 2007 file photo. (AP Photo/Richard Drew, file)   (Associated Press)
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(Newser) – Stocks fell again today after JPMorgan Chase predicted that profits would drop at big brokerages. Meanwhile, lower oil prices lowered earning prospects for energy companies, reports Bloomberg. "Until credit loosens up, you can't get a solid footing in the market," says a manager. The Dow was down 65.84 to 13,248.73, the Nasdaq 17.3 to 2,619.83, and the S&P 500 9.63 to 1,462.79.

Shares of Goldman Sachs, Morgan Stanley, Merrill Lynch, and Lehman Brothers all fell after JPMorgan released its analysis. And Exxon and Chevron dropped after oil prices hit a 6-week low. Meanwhile, some are starting to predict that the Fed may cut rates by a half-point rather than a quarter-point at its meeting a week from today.