Dow Down 203 After Yo-Yo Day

Boost in new home sales is not enough to sustain day's gains
By Nick McMaster,  Newser Staff
Posted Oct 27, 2008 3:20 PM CDT
Traders work on the floor of the New York Stock Exchange today.   (AP Photo)
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(Newser) – Stocks closed down today at the end of an extremely volatile session that saw the Dow up over 200 points as investors reeled from plunging overseas markets but were somewhat encouraged by positive news on US home sales, MarketWatch reports. The Dow lost 203.18 to close at 8,175.77. The Nasdaq fell 46.13 to 1,505.90, while the S&P 500 closed down 27.85 at 848.92.

Global stock indices dropped 5%-10%, and the IMF was forced to extend bailouts to the economies of Ukraine and Hungary. But sales of new homes in the US saw a 2.7% rise, the Commerce Department said. Verizon was a bright spot amid mostly declining blue chips: The firm reported a 31% profit increase in the third quarter, and its stock rose 11%.