Stocks Drop on Fed Chief's Mixed Report

Tech earnings, Bear Stearns, Bernanke send Dow tumbling 53.33
By Greg Atwan,  Newser User
Posted Jul 18, 2007 3:52 PM CDT
Traders on the floor of the New York Stock Exchange look to an overhead monitor on a down trading day, Wednesday, July 18, 2007. Stocks retreated as investors reacted uneasily to Federal Reserve Chairman...   (Associated Press)
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(Newser) – US markets sank today after two Bear Stearns hedge funds were revealed to be worthless and the Fed Chairman expressed concerns about the stability of the economy. Testifying before the House, Ben Bernanke said he expects growth next year, but stressed that the sinking housing market continues to saddle the economy. After four straight record closes, the Dow dropped 53.33 to 13918.22.

Bernanke also echoed Wall Street's concerns about subprime mortgages in the wake of the collapse of the heavily subprime-backed Bear funds. The S&P dropped 3.20 to 1546.17, and the Nasdaq lost 12.80 to close at 2699.49. Poor earnings reports added to the correction: Intel lost over 5% after a positive earnings report revealed the chip-maker would cut prices.