Stocks Fall as Early Rally Fades

Traders fear Bush stimulus package is not enough.
By Nick McMaster,  Newser Staff
Posted Jan 18, 2008 4:00 PM CST
Traders work on the floor of the New York Stock Exchange January 18, 2008 in New York City. Stocks continued to slide in afternoon trading despite the announcement of US President George W. Bush's economic...   (Getty Images)
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(Newser) – Stocks fell for the fourth straight session today as fears that President Bush’s stimulus plan will not be enough to stave off a recession dissipated an early rally, MarketWatch reports. The Dow ended down 59.91 at 12,099.30, and the Nasdaq fell 6.88 to close at 2,340.02. The S&P 500 dropped 8.06 points to 1,325.19, capping its biggest weekly loss in 5 years.

The markets initially looked as though they might rebound after strong fourth-quarter earnings reports from IBM and GE. But a feeling that the stimulus plan was not as strong as had been expected soured sentiment, as did Sprint’s report of poor results, which stoked fears that the housing slump is affecting consumer spending.