Home resales hit record low; Dow erases 200-point drop on Fed cut hopes

CBS

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[Music] the worst is yet to come for the housing market that's what economists are saying as the Housing Industry plunges deeper into recession home resales for September tanked 8% to the lowest level on record as the recent credit Market collapse makes it harder for buyers to land mortgages economists predict that the credit crunch will continue to hit housing into next year and that even when there is a recovery it will be a slow process and that will see weakness continue into 2009 on Wall Street stocks were hit by a triple threat that big drop in home resales a spike in oil prices and a huge loss posted by Merl Lynch which The Brokerage giant blamed on the mortgage mess but stocks roared back in the home stretch with the Dow erasing all of a 200 Point plunge on unconfirmed rumors that the FED will make an emergency interest rate cut ahead of next week's regularly scheduled meeting in the end the Dow finished near the Flatline the NASDAQ composit slip 24 investors are bracing for more bad news today when we get the latest figures on new home sales for September and Microsoft is making headlines not only is the software giant out with earnings later today but it's investing up to $240 million for a stake in the social networking website Facebook that's your money watch find more business headlines at cbsnews.com in New York I'm Alexis christopherus

New home sales up 5%; Microsoft takes 1.6% stake in Facebook

CBS News

Transcript

[Music] here's something we haven't heard in a while new home sales actually rose up about 5% in September that follows a dismal August when new home sales tumbled 8% even with this latest modest increase new home sales last month were still 23% below a year ago that follows news that home resales in September tanked 8% on Wall Street another late day rally helped the Blue Chips all but erase a triple digit sell off the Dow dipping three points on the day but the NASDAQ slid nearly 24 Microsoft is a stock you'll want to watch Friday the software giant posted quarterly profits and earnings that breezed past wall Street's estimates Microsoft also plunked down $240 million for a 1.6% stake in the social networking site Facebook beating out a competing bid from Google and house Democrats unveiled a trillion dollar tax plan designed to lower taxes for lower and middle inome people the bill would reduce taxes for almost all families with incomes under half a million dollars the plan would repeal the Alternative Minimum Tax and be paid for by raising taxes on the wealthy and some corporations that's your money watch log on to cbsnews.com for more in New York I'm Alexis christopherus