U.S. Stocks Fall, Sending Market Below Lowest Close Since 1997

[Purveyor]

By Lynn Thomasson

Feb. 23 (Bloomberg) -- U.S. stocks fell, sending the Standard & Poor’s 500 Index below its lowest close in 12 years, as concern that the deepening recession will erode earnings offset the government’s pledge to give more capital to banks.

Hewlett-Packard Co. and Intel Corp. slid at least 4.6 percent as Morgan Stanley said technology stocks are the most vulnerable among economically sensitive industries. Steelmakers declined after UBS AG said the group has increased output too quickly. Bank of America Corp. rose 5 percent and Citigroup Inc. climbed 8.2 percent as concern eased that the U.S. government will seize control of the lenders.

The S&P 500 lost 2.4 percent to 751.94 at 1:07 p.m. in New York, below its lowest close since April 1997. The Dow Jones Industrial Average decreased 152.68 points, or 2.1 percent, to 7,212.99, below its lowest close since October 1997. The Russell 2000 Index lost 2.8 percent.

“There just don’t seem to be any clear signs that some of the problems have run their course,” said Mike Ryan, head of wealth management research for the Americas at UBS Financial Services Inc. “We’re still being governed by how deep the recession be.”

The S&P 500 has fallen almost 17 percent in 2009, the worst start to a year on record, as President Barack Obama and Treasury Secretary Timothy Geithner failed to assuage investor concerns with an $787 billion economic stimulus plan comprised of tax breaks and government spending.

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BLOOMBERG: http://www.bloomberg.com/apps/news?pid=20601087&sid=aPvaYKTd90pQ&refer=home

[ixion]

1. “We’re still being governed by how deep the recession be.”

Uh, yeah. Wonderful phrasing there. :eyes:

[jsamuel]

2. AAAARRRRR!