Reuters Stocks sink to November lows on recession fears

Tuesday February 17, 2009, 4:40 pm EST
NEW YORK (Reuters) - Stocks slid within striking distance of the November bear-market low on Tuesday, as grim manufacturing data signaled the recession is worsening and warnings on risks facing European banks underscored the continuing toll of the financial crisis.

Financial stocks sank to 14-year lows after Moody's Investors Service said banks could be hit by the recession in Eastern Europe, pulling the S&P Financial index (^GSPF - News) down 8 percent.

Data showing a sharp contraction in Japan's economy set the tone early in the day and helped yank oil prices down nearly 7 percent to below $35 a barrel. Chevron and Exxon Mobil were the Dow's biggest drags, sliding more than 4 percent.

"As we retest these November lows, the reality that sets in is that we may have another leg to go down in the economy and the market," said Bucky Hellwig, senior vice president at Morgan Asset Management in Birmingham, Alabama. more...