RobertB
January 30th, 2008, 04:59 PM
US STOCKS-Wall St lower on CNBC bond insurer report
01.30.08, 3:58 PM ET
NEW YORK (Reuters) - U.S. stocks turned negative in late-session trading Wednesday after CNBC reporter Charles Gasparino said he believed that ratings agencies may downgrade bond insurers AMBAC Financial Group Inc. and MBIA Inc. (nyse: MBE - news - people ) as early as today.
Major U.S. indexes wiped out gains of more than 1 percent spurred by a half percentage point interest rate cut by the U.S. Federal Reserve after the Gasparino comments.
The Dow Jones industrial average was down 8.45 points, or 0.07 percent, at 12,471.85. The Standard & Poor's 500 Index was down 2.07 points, or 0.15 percent, at 1,360.23. The Nasdaq Composite Index was down 0.39 points, or 0.02 percent, at 2,357.67.
Investors are anxious that Moody's (nyse: MCO - news - people ) Investors Service and Standard & Poor's Ratings Services may remove their triple-A rating on the two companies, which together insure more than $1 trillion in bonds.
"My gut is telling me Moody's and S&P are going to downgrade either one or both," Gasparino said.
http://www.forbes.com/topstories/home/feeds/reuters/2008/01/30/2008-01-30T205804Z_01_N30235704_RTRIDST_0_MARKETS-STOCKS-UPDATE-16-URGENT.html
01.30.08, 3:58 PM ET
NEW YORK (Reuters) - U.S. stocks turned negative in late-session trading Wednesday after CNBC reporter Charles Gasparino said he believed that ratings agencies may downgrade bond insurers AMBAC Financial Group Inc. and MBIA Inc. (nyse: MBE - news - people ) as early as today.
Major U.S. indexes wiped out gains of more than 1 percent spurred by a half percentage point interest rate cut by the U.S. Federal Reserve after the Gasparino comments.
The Dow Jones industrial average was down 8.45 points, or 0.07 percent, at 12,471.85. The Standard & Poor's 500 Index was down 2.07 points, or 0.15 percent, at 1,360.23. The Nasdaq Composite Index was down 0.39 points, or 0.02 percent, at 2,357.67.
Investors are anxious that Moody's (nyse: MCO - news - people ) Investors Service and Standard & Poor's Ratings Services may remove their triple-A rating on the two companies, which together insure more than $1 trillion in bonds.
"My gut is telling me Moody's and S&P are going to downgrade either one or both," Gasparino said.
http://www.forbes.com/topstories/home/feeds/reuters/2008/01/30/2008-01-30T205804Z_01_N30235704_RTRIDST_0_MARKETS-STOCKS-UPDATE-16-URGENT.html