Stocks Fall on Financial Pessimism

Slashed Countrywide estimates, housing figures lead to slump
By Kevin Spak,  Newser Staff
Posted Aug 27, 2007 4:48 PM CDT
Traders and Specialists work the trading floor of the New York Stock Exchange.   (Associated Press)
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(Newser) – US stocks fell today on a disappointing home-sales report and lowered projections for Countrywide, the nation’s top home lender, with Lehman Brothers citing “extraordinary weakness” in mortgage loans. The Dow closed at 13,322.13, down 56.74, near the session low. The S&P 500 fell 12.58, to 1,466.79, and the Nasdaq declined 15.44 to close at 2,561.25.

Volume was down—the NYSE moved just 1.1 billion shares, the low for a full session in 2007—amid ongoing concern over the real estate downturn. "Until the Fed does something to lower the cost of debt," one analyst told Bloomberg, "this drag on the consumer will continue." But futures traders don't see that happening.