Stocks Plunge; Dow Down More Than 310

BY

DOW 13473.57  - 311.50 (2.26%)

10-yr Bond 4.77%    - 0.127

USD Index  80.33

Stocks Plunge on Lending Worries, As Dow Industrials Plunge More Than 310 Points

Wall Street suffered one of its worst losses of 2007 Thursday, leading a global stock market
plunge as investors succumbed to months of worry about the mortgage and corporate lending markets. The Dow Jones industrials closed down more than 310 points after earlier skidding
nearly 450.

Investors who had been able for months to largely shrug off discomfort about subprime
mortgage problems and a more difficult environment for corporate borrowing finally decided it
was time to sell after the Commerce Department issued another disappointing home sales
report.

Feeding the plunge were concerns that higher corporate borrowing costs will curb the rapid
pace of takeovers that had driven stocks higher this year. Investors also feared the sluggish
environment for home sales and continued defaults in subprime loans would spur debt defaults
and weigh on corporate earnings.

While stocks plummeted, investors poured money into the safe haven of the bond market. The soaring price of Treasurys pulled yields lower, and the rate on the 10-year note plunged to 4.79 percent from late Wednesday's 4.90 percent.

The declines triggered a global sell-off in stocks, causing minor losses in Europe to accelerate
rapidly along with the Dow's drop. In Europe, Britain's FTSE 100 closed down 3.15 percent,
Germany's DAX index dropped 2.39 percent, and France's CAC-40 fell 2.78 percent.

Asian markets followed, with Japan's Nikkei stock index falling 2.55 percent in early trading in
Tokyo on Friday.

Wall Street also found more immediate reasons to sell during the session -- primarily the home
sales figures from the Commerce Department, which further eroded confidence in the housing
industry's ability to rebound

Amigo

Thanks!