U.S. stocks trim early losses fueled by credit-crunch fallout

Date: Mon, 17 Mar 2008 16:01:03 (GMT)
U.S. stocks trim early losses fueled by credit-crunch fallout

U.S. stocks dive at start and then trim losses, with sentiment hit by
the latest fallout from the credit crisis – the distressed sale of
Bear Stearns Cos. Inc. and the Federal Reserve's extraordinary rate
cut just two days ahead of Tuesday's slated meeting.

J.P. Morgan to buy Bear Stearns for $2 a share

J.P. Morgan Chase & Co. is buying battered broker Bear Stearns Cos. for
$236 million in a Federal Reserve-backed bailout unprecedented in scope
and execution.

Lehman shares bounce back after dropping 30%

Lehman Brothers Holdings Inc. shares were off their lowest levels after
dropping more than 30% ahead of the open as Moody's Investors Service
trimmed its outlook on the investment bank's debt rating, heightening
concerns about liquidity.

Currencies: Battered dollar gets some short-covering respite

The Bear Stearns fire sale and the Federal Reserve's emergency
decision to cut its discount rate sends the dollar plunging to historic
lows against major counterparts, only to recover slightly in early U.S.
trade.