Dow falls below 13,000; housing starts hit 16-year low
CBS News
Transcript
[Music] the Blue Chips start the day below 13,000 for the first time since April investors will be focused on the housing market once again as we see if stocks can state to comeback it was more of the same on Wall Street Wednesday with wild swings sending the Dow up as much as 90 points and then down nearly 200 when the closing bell rang the Dow would give him back 167 points to close below 13k the NASDAQ tumbled 40 investors will be watching for the latest news on home construction today with reports out on housing starts and building permits for July the news follows word that home builder confidence fell for the sixth straight month and is now at a 16-year low adding to the housing Wow's turmoil in the mortgage Market is now taking its toll on home sales which fell to a 4-year low in July and the average home price also fell down 1.5% to $223,000 and one more use for the latest musthave gadget one publisher is linking up with the iPhone Harper Collins is making excerpts from more than a dozen new releases available to iPhone users on its website they'll be able to view up to 10 pages of a book's first two chapters that's your money watch log on to cbsnews.com to follow all the market action at the New York Stock Exchange I'm Alexis christopherus
Dow recovers from 340-point drop; Fed injects $17B
CBS News
Transcript
[Music] It was an incredible turnaround on Wall Street today. The Dow clawing its way back from a more than 340 point selloff as the bargain hunter stepped in after weeks of massive declines. The Dow ending the day off just 15. The Nasdaq also recovering down just seven. Financial stocks like JP Morgan and City Bank led to the rebound on the Dow. Growing fears about the credit crisis sent the blue chips tumbling triple digits right out of the gate. Earlier in the day, the Federal Reserve tried to calm fears, injecting an additional 17 billion dollars into the banking system. Countrywide Financial had added to the credit wos. The nation's largest mortgage lender saying it will be draining an 11.5 billion dollar credit line just to stay in business. And more bad news from the housing market didn't help matters on Wall Street. The government reported housing starts fell more than 6% last month. That means homebuilders started construction on the fewest number of new homes in more than a decade. Meanwhile, the cost of financing a home has turned around. The average interest rate for a 30-year mortgage ticked higher to 6.62% from 6.59% last week. On a 15-year loan, the average rate rose to 6.3%. And that's your money watch. Log on to cbsnews.com for more at the New York Stock Exchange. I'm Claire Leica.