Today Stock Market News

Nine-tenths of one percentage point.

Asian markets tumbled Tuesday, with shares plunging across the board as fears about the global credit crisis deepened after the U.S. House of Representatives voted down the $700 billion financial bailout package overnight.

Japan’s jobless rate climbed to 4.2% in August, rising 0.2% from the previous month, the government said Tuesday.

HONG KONG (MarketWatch) — Hong Kong stocks plunged early Tuesday, as shocked investors dumped shares after the U.S. House of Representatives voted down the government’s $700 billion financial rescue package overnight. The benchmark Hang Seng Index lost 5% to 16,996, while the Hang Seng China Enterprises Index gave up 5.7% to 8,441.74. Shares of Industrial & Commercial Bank of China fell 6.9% and HSBC Holdings gave up 3%, while China Mobile lost 3.8%.

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Canadian equities plunged Monday, with an acceleration of investor anxiety over the global credit crunch after U.S. lawmakers failed to pass the Bush Administration’s proposed $700 billion financial-sector rescue package.

HONG KONG (MarketWatch) — Asian markets tumbled early Tuesday after the U.S. House of Representatives voted down the $700 billion financial bailout package overnight, with shares plunging across the board. The Nikkei 225 Average slumped 4.8% to 11,178.34 and the Topix index skidded 5.1% to 1,070.20. Australia’s S&P/ASX 200 index lost 2.8% to 4,674.50 and New Zealand’s NZX 50 index gave up 4.3% to 3,052.81. South Korea’s Kospi fell 4.9% to 1,385.79.

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The hiring of a high-profile litigator to assist Canadian antitrust regulators in reviewing the proposed advertising partnership between Yahoo and Google could mean the deal will face a legal challenge north of the border.

It’s been a wild financial ride over the past year and especially the past few weeks. You’ve seen enough.

LOS ANGELES (MarketWatch) — Moody’s Investors Service late Monday downgraded the ratings of Belgian-Dutch financial firm Fortis in the wake of a more than $16 billion effort by three European governments to bail out the company. The downgrades affect the banking financial strength ratings for Fortis’ main bank operations, as well as Fortis’ debt and European insurance operations. The governments of Belgium, the Netherlands and Luxembourg launched an 11.2 billion euro ($16.4 billion) rescue for Fortis, in part after potential bidders reportedly turned away from a deal. Moody’s expects “the banks’ market positions and franchises to come under considerable pressure in all markets due to the highly integrated nature of the Group,” the agency said in a statement.

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Make sure you keep bank and credit union account statements and deposit records, because they may prove essential for the quick collection of deposit insurance due to you if your bank or credit union is liquidated.

The Bank of Japan’s quarterly tankan survey of business sentiment due out Wednesday is expected to show the Japanese economy heading into recession amid slumping external demand and elevated commodity prices.

British Prime Minister Gordon Brown was left shell-shocked Monday night after the U.S. Congress rejected a $700 billion bank bailout plan, but vowed to take “whatever action is necessary” to preserve the stability of the financial sector.

Equity markets across Latin America plunged Monday, knocked sharply lower as U.S. lawmakers voted to reject the Bush Administration’s $700 billion plan to rescue the financial sector.

SAN FRANCISCO (MarketWatch) — Expeditors International of Washington Inc. late Monday said it named Bradley Powell as chief financial officer. Powell most recently served as president and CFO of Eden BioScience Corp., a biotechnology company.

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SAN FRANCISCO (MarketWatch) — The Board of Trustees of the Reserve Fund late Monday said it has voted to liquidate the assets of the Primary Fund. The board also approved cash distribution to investors in the Primary Fund as of the close of business on Sept. 15, 2008. The distribution is expected to be paid around Oct. 13. The distribution will aggregate $20 billion, which is equivalent to about 32% of the Primary Fund’s total assets as of Sept. 12. “The Fund cannot currently estimate when additional distributions to investors will be made. However, the Board and the Fund’s adviser are acting as expeditiously as markets permit to restore liquidity to investors,” said the Reserve Fund in a statement.

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The rejection of a $700 billion bailout plan in the U.S. House isn’t good news for either Republican presidential candidate John McCain or the chamber’s Democratic leadership, analysts say.

Here is the roll-call vote for the $700 billion financial rescue legislation that House lawmakers rejected Monday.

SAN FRANCISCO (MarketWatch) — International Rectifier Corp. late Monday once again rejected Vishay Intertechnology Inc.’s $23-a-share bid for the company, calling it inadequate. “The Vishay offer is inadequate and should be rejected by our shareholders,” said Richard Dahl, International Rectifier chairman, in a statement. Dahl said that Vishay, which first made an offer Aug. 15, has yet to secure commitments to fund the offer. Earlier in the day, Vishay formally began its hostile bid for International Rectifier by taking its bid for the company to shareholders.

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SAN FRANCISCO (MarketWatch) — Moody’s Investors Service on Monday cut iStar Financial to below investment grade of Ba1 from Baa3 and kept the rating on review for a possible further downgrade. The decision was prompted by the expectation that iStar’s asset performance will experience additional pressure as the commercial real estate market fundamentals weaken. Moody’s review will focus on examining iStar’s asset performance, the prospects for earnings given the economic climate, and potential limitations to operations in a stressed scenario. Moody’s expects a downgrade if its non-performing assets exceed the mid-teens with a multi-notch downgrade likely if non-performing assets rose sharply.

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Congress calls Wall Street’s bluff, and investors, savers, retirees and employees around the world lose their shirts, writes David Callaway.

NEW YORK (MarketWatch) - Judging by the 777-point decline in the Dow Jones Industrial Average, Wall Street was a little surprised that the $700 billion rescue package was defeated Monday on Capitol Hill.

SAN FRANCISCO (MarketWatch) — Moody’s Investors Service on Monday placed National City Corp.’s senior debt rating of A3 on review for a possible downgrade. The review will focus on the implications of National City’s exposure to significant real estate related credit costs. The magnitude of these credit costs relative to the firm’s earnings from its core banking franchise make the timing of its return to profitability uncertain, Moody’s said. This in turn has weakened investor confidence and could impact National City’s core franchise stability, the ratings agency noted.

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WASHINGTON (MarketWatch) — Treasury Secretary Henry Paulson said late Monday that he was disappointed with the House vote rejecting his mortgage bailout package but said he would press ahead to try to find a compromise. Paulson said he would use “all tools” that he has to protect markets and the economy. “We have much work to do and this is much too important to let fail,” Paulson said in a brief press conference with reporters outside the Oval Office after his meeting with President Bush. Paulson defended his package that failed by eleven votes. “We had a plan that we worked very hard on that did the job…so where we go from here we’ll be working with Congressional leaders,” he said. “We have significant tools but they are not sufficient,” he said.

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Airline stocks fall further as investors fret over whether Congress will pass the $700-billion bank bailout package.

SAN FRANCISCO (MarketWatch) — ING said late Monday it has decided not to make an offer to buy ABN Amro Netherlands from Fortis . “ING remains committed to a disciplined approach when considering acquisitions, especially in the current extraordinary market circumstances. After careful consideration ING concluded that a transaction would not meet its financial requirements,” said the Dutch financial group in a statement. Fortis agreed to sell its stake in ABN Amro in exchange for a 11.2 billion euro ($16.4 billion) rescue package from the governments of Belgium, the Netherlands and Luxembourg.

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SAN FRANCISCO (MarketWatch) — November crude traded at $95.39 per barrel on Globex Monday evening, down 98 cents from the New York Mercantile Exchange’s closing level of $96.37. On Nymex, the contract’s price had already dropped $10.52, or 9.8%, for the session. The market remained concerned about global oil demand as the Dow Jones Industrial Average dropped more than 700 points.

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BOSTON (MarketWatch) — Drug stocks were slammed in afternoon trading Monday following U.S. House of Representatives’ largely unexpected rejection of legislation to aid the the ailing U.S. banking industry. The Amex Pharmaceutical Index and the Amex Biotechnology Index both fell about 5% to 283.24 and 765.95, respectively. Gilead Sciences and Celgene Corp. were the biggest losers on the large cap biotech side, both dropping at least 13%. On the Big Pharma side, European drugmakers GlaxoSmithKline PLC , Novo Nordisk A/S and Sanofi-Aventis were the sharpest decliners, all down over 6%.

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CHICAGO (MarketWatch) — Shares of diversified media and entertainment stocks fell hard Monday, many of them reaching fresh lows, after the House of Representatives rejected a proposed $700 billion bailout. News Corp. and Viacom hit their lowest levels in more than four years, while CBS and Time Warner fell to one-year lows. Walt Disney Co. fell more than 9%, and Sony lost 5%. Cable operators didn’t escape the carnage, as Comcast gave up 13% and Cablevision Systems fell 5.5%.

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SAN FRANCISCO (MarketWatch) — December gold traded at $916.20 an ounce in electronic trading on Globex Monday evening. The contract had gained $5.90 on the New York Mercantile Exchange to end that trading session at $894.40 so Globex prices are up more than $20 from that level. Prices climbed after the U.S. House of Representatives voted against the financial bailout plan. “The crucial thing is that gold was making gains as the U.S. dollar was rising too,” said Sam Kirtley, editor of Gold-Prices.biz. “Since they usually move in opposite directions, this is a sign of the tremendous strength building behind the yellow metal.”

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NEW YORK (MarketWatch) — U.S. stocks dived on Monday, with the Dow Jones Industrial Average hit with its worst point loss ever, after the House of Representatives rejected the government’s $700 billion rescue plan for the financial sector. The Dow Jones Industrial Average fell 738.42 points, or 6.6%, to end at 10,404.71. The S&P 500 dropped 98.19 points, or 8.2%, to finish at 1,113.82, while the Nasdaq Composite declined 199.61 points, or 9.1%, to end at 1,983.73.

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BOSTON (MarketWatch) — A popular exchange-traded fund following the S&P 500, SPDR Trust , lost 7.5% on Monday after U.S. legislators shot down a bailout plan designed to boost roiled credit and financial markets. The ETF, which listed in 1993, saw its largest daily percentage decline ever.

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SAN FRANCISCO (MarketWatch) — Airline stocks tumbled Monday amid a huge broad market sell off. The biggest percentage losses came from Northwest Airlines , down 11%, Continental Airlines , down 10.7%, and United Airlines parent UAL Corp. , off 9%. Overall, the Amex Airline Index dropped 8.6% to 20.51 points.

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SAN FRANCISCO (MarketWatch) — In the biggest tech-sector selloff in more than three years, the tech-heavy Nasdaq Composite Index [$compq] plunged 199 points, or more than 9% to close at 1,983, the first time it closed below 2,000 since May 2005. Fears about the House of Representatives failing to pass the $700 billion financial bailout added to the sell-off. Apple Inc. led the tech downturn, falling $22.98 a share, or almost 18%, to $105.26 after two Wall Street analysts cut their ratings on Apple’s stock. Among tech bellwethers, IBM Corp. fell $4.96 a share, or 4%, to $114.46, and Hewlett-Packard Co. , Microsoft Corp. , Dell Inc. and Intel Corp. each lost at least 6%.

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SAN FRANCISCO (MarketWatch) — General Motors Corp. and Ford Motor Co. saw their shares drop about 13% to lead a steep decline in the auto sector Monday after the House of Representatives voted down the $700 billion Wall Street bailout. Honda Motor Co. , Nissan Motors and Daimler all dropped about 10% while Toyota Motor Corp. gave up 7.9%.

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BOSTON (MarketWatch) — An exchange-traded fund tracking the financial-services stocks in the S&P 500, Financial Select Sector SPDR , lost more than 11% on Monday. Banking stocks plunged further after the U.S. House of Representatives failed to pass a proposed $700 billion bailout plan geared to inject confidence into global debt markets. The ETF, which was launched in 1998, saw its biggest one-day percentage decline ever.

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WASHINGTON (MarketWatch) — President Bush said Monday he would work with Congress on a way forward now that his economic rescue package was defeated by the House of Representatives. In a brief statement to reporters in the Oval Office, Bush said he would meet later with his economic advisers to review the vote. Earlier, Bush’s spokesman said the White House was unsure of what the next steps might be now that the plan had been defeated.

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SAN FRANCISCO (MarketWatch) — The tech-heavy Nasdaq Composite Index fell as much at 9% Monday as a broad market slump showed no signs of abating in late trading. The Nasdaq fell to as low as 2,002, touching levels not seen in at least two years as losses mounted following the House of Representatives failure to pass the $700 billion financial bailout package. Apple Inc. led the tech losses, falling $23.52 a share, or more than 18%, to $104.90 after two analysts cut their ratings on the stock. Tech bellwethers IBM Corp. , Dell Inc. , Microsoft Corp. and Hewlett-Packard Co. all saw their shares fall more than 5%.

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SAN FRANCISCO (MarketWatch) - Congress is looking at playing with mark-to-market accounting rules as part of the now-stalled $700 billion-dollar bailout plan for the U.S. financial system.

WASHINGTON (MarketWatch) — The Treasury Department will use “all tools” at its disposal to protect financial markets in the wake of the House of Representative vote rejecting the mortgage rescue package, a spokesman said Monday. Paulson will confer with President Bush and Federal Reserve Chairman Ben Bernanke and Congressional leaders on next steps. White House spokesman Tony Fratto said that Bush had asked his economic advisers to gather for a meeting. In a television interview, Fratto said White House was “unsure” of the next step. He said the crisis that existed before the vote is still in place.

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SAN FRANCISCO (MarketWatch) — Moody’s Investors Service on Monday placed Citigroup Inc.’s ratings, including its senior unsecured debt rating of Aa3, on review for a possible downgrade following the announcement that Citi will buy Wachovia Corp.’s bank and thrift assets for $2.1 billion. The Wachovia deal is expected to boost Citigroup’s U.S. deposit business while an expanded deposit business will support both earnings diversity and liquidity, said Moody’s. However, the ratings agency believes the deal poses challenges at a time when Citigroup’s asset quality is being undermined by weakening consumer and commercial markets.

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SAN FRANCISCO (MarketWatch) — November crude closed with a loss of $10.52, or 9.8%, at $96.37 per barrel Monday on the New York Mercantile Exchange. The financial bailout package failed to pass, contributing to expectations of further weakness in global oil demand, analysts said. According to Nymex rules, if a crude futures contract is traded at the limit of $10 per barrel for five minutes, trading is halted for five minutes. It wasn’t clear if the halt occured since the drop happened right at the session’s close and prices finished at the lowest Nymex level of the day.

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SAN FRANCISCO (MarketWatch) — Wachovia Corp. shares slumped more than 80% as trading resumed on Monday. Citigroup Inc. agreed to acquire Wachovia’s banking business for a knock-down price of $2.16 billion, with help from the Federal Deposit Insurance Corp. Wachovia stock was down 81% at $1.94 in afternoon action.

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Investors dump emerging-market stocks and currencies, coming under heavy selling pressure after the U.S. House of Representatives rejects the proposed $700 billion rescue plan for the financial sector.

U.S. financial stocks fail to get a boost from the government’s $700 billion rescue plan, as Wachovia becomes the latest victim of the global credit upheaval.

Energy stocks decline Monday as doubts about the government’s historic $700 billion bailout plan further weakened shares of petroleum and natural-gas producers.

Americans’ efforts to stay out of the poor house by scrimping on health care is spreading a chill through the nation’s pharmacies.

SAN FRANCISCO (MarketWatch) — General Motors Corp. shares dropped more than 8% Monday after the broader market fell hard on a House of Representatives vote against the proposed $700 billion Wall Street bailout. Ford Motor Co. shed 4.2%, while Honda Motor Co. and Nissan Motors both shed about 9%. Toyota Motor Corp. lost 7.9%. Automakers are expected to post on Wednesday steep declines in September U.S. sales.

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NEW YORK (MarketWatch) — U.S. stock indexes sank sharply as the U.S. House rejected the proposed $700 billion rescue package for the financial sector. Down as much 700 points as lawmakers cast their ballots, the Dow Jones Industrial Average was more recently off 532.13 points at 10,611. The S&P 500 was down 73.83 points at 1,140.90, while the Nasdaq Composite shed 141.03 points to 2,042.31.

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BOSTON (MarketWatch) - Drug stocks were hit hard Monday afternoon following news that the U.S. House of Representatives has voted down a resolution to provide aid to the crippled U.S. banking industry. The Amex Pharmaceutical Index was down 3.3% at 389.79 as the Amex Biotechnology Index fell 2.6% to 783.67.

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SAN FRANCISCO (MarketWatch) — Already deep in the red, technology stocks fell even more Monday afternoon after the financial bailout package failed to pass at the U.S. House of Representatives. The tech-heavy Nasdaq Composite Index was down 6.8% at 2,034 following the vote while the Morgan Stanley High-Tech Index was down 7.3%. Both indexes were down about 4% prior to the vote. Apple Inc. was down 19% to $104 following a pair of analyst downgrades. Google Inc. was down 9.7% at $389.16.

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