Dow sinks 311 on credit fears; HSBC sets aside $1.7B for bad loans
CBS News
Transcript
[Music] Wall Street will attempt to turn things around one day after the Bears trampled the stock market the Dow sank 311 points at its worst it was down over 400 points the NASDAQ Composite tumbled 49 anxiety about shaky credit markets soaring oil prices and the troubled housing sector swept Wall Street disappointing earnings from Exxon Mobile just added to the mix and gave investors a reason to head for the exits Financial stocks could be in for more pain today on news that Europe's biggest bank is bracing for a hit in its loan business HSBC has set aside $1.7 billion for loans gone bad but with more of its customers expected to default on their mortgage payments the bank says that money may not be enough and things are expected to get worse before they get better some Credit Agencies now predict 2 A5 million first mortgages will default this year with little chance for improvement until next summer today investors will be sorting through the latest reports on consumer sentiment and second quarter gross domestic product the earnings parade also continues we'll hear from companies including Chevron Clear Channel and Colgate Palmolive and IBM is making history online this week big blue will become the first company to publish Official Guidelines for more than 5,000 employees who inhabit Second Life in other Virtual Worlds where IBM hosts meetings with clients and partners these online communities are increasingly becoming home to companies looking to advertise their brand and that's your money watch be sure to log on to cbsnews.com for the latest business headlines at the New York Stock Exchange I'm Alexis christopherus