Dow Sinks Below 11K

Fannie, Freddie continue to sink; regional banks hit hard
By Nick McMaster,  Newser Staff
Posted Jul 15, 2008 3:34 PM CDT
Traders work on the floor of the New York Stock Exchange, Tuesday, July 15, 2008.    (AP Photo/Edouard H.R. Gluck)
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(Newser) – The markets ended mixed today after a seesaw session. An $8 decline in crude encouraged investors, but concerns about the fate of the mortgage GSEs and regional banks persisted, MarketWatch reports. The Dow ended down 93.39 at 10,961.80, the first time in over 2 years the average has closed below 11,000. The Nasdaq gained 2.84 to close at 2,215.71, and the S&P 500 fell 13.39 to 1,214.91.

GM rallied after its announcement of a major restructuring. Fannie Mae and Freddie Mac both plummeted around 20% despite the SEC's announcement that it would restrict "naked” short selling of the GSEs' stock. Regional banks continued to suffer fallout from IndyMac’s dire straits: Fifth Third fell 3.2%, and National City lost 11%.