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ReutersIn the real economy, however, the news was mostly grim.
Investment bank Merrill Lynch, which has agreed to be acquired by Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz), wrote down $5.7 billion of toxic assets and Citigroup reported a quarterly net loss of $2.8 billion.
U.S. home builder sentiment sank to an all-time low in October; motorcycle maker Harley-Davidson Inc (HOG.N: Quote, Profile, Research, Stock Buzz) cut its earnings forecast; General Motors (GM.N: Quote, Profile, Research, Stock Buzz) said it would lay off 1,500 hourly workers; and big U.S. manufacturers braced for a slowdown.
U.S. industrial production marked its biggest drop in 34 years in September and factory activity in the U.S. mid-Atlantic region fell to an 18-year low in October.
"We should anticipate further declines in employment and softness in most components of demand for goods and services," said Gary Stern, head of the Minneapolis Federal Reserve Bank.
A Reuters poll of economists said the world's richest nations are in, or close to, recession, with a sharp deterioration in the U.S. outlook.
Read more: http://www.reuters.com/article/bondsNews/idUSN1639806720081016?sp=true