U.S. Stocks Decline to Two-Month Low; Qualcomm, Wachovia Fall

Source: Bloomberg

U.S. Stocks Decline to Two-Month Low; Qualcomm, Wachovia Fall

By Michael Patterson
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Nov. 9 (Bloomberg) -- U.S. stocks dropped to the lowest levels in two months after Qualcomm Inc. trimmed its profit forecast and Wachovia Corp. and Fannie Mae said mortgage losses are increasing.

Qualcomm, the second-biggest maker of mobile-phone chips, fell, sending technology shares to their steepest weekly decline in four years. Wachovia, the fourth-largest U.S. bank, and Fannie Mae, the top source of money for U.S. home loans, led financial shares to a two-year nadir. Falling stocks triggered a rally in Treasuries, pushing yields on three-month bills to the lowest since August.

The S&P 500 Index lost 16.92, or 1.2 percent, to 1,457.85 at 11:27 a.m. in New York, trimming its gain to 3.3 percent since the Federal Reserve cut its discount rate on Aug. 17. The Dow Jones Industrial Average decreased 165.91, or 1.3 percent, to 13,100.38. The Nasdaq Composite Index declined 55.48, or 2.1 percent, to 2,640.52. About five stocks fell for every one that rose on the New York Stock Exchange. Benchmark indexes retreated in Europe and Asia amid speculation Barclays Plc and Mizuho Financial Group Inc. will report losses on subprime-related assets.

``Investors are concerned about the financial system,'' said David Baker, who helps manage $1.1 billion as chief investment officer at North American Management Corp. in Boston. ``We've avoided financials because we didn't understand many of their exposures and we thought there was too much risk.''

more . . .

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a1T.XNLAKZ7k&refer=home

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I'd say about 2 1/2 hours.

will be that much better off.

Everyone else on the planet is.