Stocks Stall Amid Continued Anxiety

Traders watch, wait as Fed weighs interest rate cut
By Sam Biddle,  Newser Staff
Posted Aug 23, 2007 4:33 PM CDT
An employee of Countrywide Financial helps customers at the Northridge branch of Los Angeles, Calif., Tuesday Aug. 22, 2007. Countrywide Financial Corp. said Bank of America Corp. made a $2 billion investment...   (Associated Press)
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(Newser) – The Dow dipped a quarter-point to close at 13,235.88 today as investors continue to fret over the possibility of a Fed interest rate cut. The S&P 500 dropped 1.57 to 1,462.5, and the Nasdaq fell 11.10 to 2,541.70. Home Depot led the retreat; shares fell fell 2.2% on news that the sale of one of its divisions is in trouble.

Bank of America's decision to sink $2 billion into ailing mortgage lender Countrywide buoyed trader optimism slightly, MarketWatch reports, with Deutsche Bank predicting the investment would bolster the real estate finance sector. "At least in the near-term a relative state of tranquillity has settled into the markets as we wait for the next shoe to drop," said one market strategist.