U.S. stocks fall sharply for fifth day; S&P 500 at five-year low

Date: Tue, 07 Oct 2008 17:04:53 -0400
U.S. stocks fall sharply for fifth day; S&P 500 at five-year low

U.S. stocks decline for a fifth session straight, extending a sharp
sell-off that has the major indexes trading at or near four-year lows,
as investors find little relief in the Federal Reserve's latest steps to
ease frozen credit markets.

Second debate on tap as financial fears mount

Sens. John McCain and Barack Obama head into their second presidential
debate on Tuesday night, with the Arizona Republican trailing in polls
behind his Democratic opponent and facing an uphill battle as the
election turns increasingly around the weak economy.

Odds rise for coordinated, global rate cuts

Fears that ongoing financial turmoil could wreck the world's banking
system and worsen a global slump fuels speculation that major central
banks are preparing to deliver a rare round of coordinated interest-rate
cuts if conditions don't improve.

The Fed: Fed to buy commercial paper to ease market strain

Opening up another front in the battle to end the credit crunch, the
Federal Reserve plans to begin buying unsecured commercial paper. The
aim is to restart a market that has ground to a virtual halt in recent
weeks over concern about the financial sector.

The Ratings Game: Analysts cool on Bank of America as credit
deteriorates

Wall Street analysts were quick to scale back their earnings
expectations for Bank of America Corp. after it pre-announced
third-quarter results, saying the company will face more credit woes as
the economy continues to weaken.