4:25 pm : On Monday, stocks plummeted across the world on global financial and economic concerns, although late-session buying interest helped U.S. stocks pare more than half of their losses in the final hour of trade.

The Dow, Nasdaq and S&P 500 fell 3.5%, 3.8% and 4.3%, respectively, all settling at multi-year lows.  Still, the end result was a huge improvement from the session's worst levels, when the Dow, Nasdaq and S&P 500 were down 7.8%, 8.8% and 8.3%, respectively.

Helping stocks pare their losses was a headline that France proposed an emergency G8 meeting on the financial crisis, which increased speculation that global central banks may make a coordinated intermeeting rate cut.

Overseas equity markets fared even worse than the U.S., with the DJ World Excluding U.S. Index falling 7.3% as Europe fell 7.6%

The selling in Europe was driven over concerns that more bailouts of European financial institutions are needed after Germany's government stepped in to prevent the collapse of property lender Hypo Real Estate. In addition, interbank lending rates rose in European currencies as banks remain reluctant to lend to each other.

Global growth concerns were prevalent in commodity trading, with the CRB Index plunging 5.2%. Oil prices dropped 5.0% to $89.15 per barrel.

Meanwhile, risk averse investors bid up the prices of Treasuries in a flight-to-quality trade. The 10-year note climbed 36 ticks sending its yield down to 3.47%. On a related note, gold, which is considered a safe-haven, rallied 4.4% to $865.50 per ounce.

Weakness in Europe prompted a large 1.5% rally in the dollar. The euro fell 2.2% to $1.35 and the pound declined 1.7% to $1.74.

In an attempt to improve liquidity and shore up confidence, the Fed announced this morning that it is planning to double the outstanding Term Auction Facilities (TAF) balances to $900 billion. The TAFs aim to improve liquidity by allowing depository institutions to borrow from the Fed using the same collateral that is accepted at the discount window. The Fed will also start paying interest on depository institutions' required and excess reserve balances. The announcement failed to lift the stock market.

The sharp declines in global stock markets induced traders to raise their bets on the size of a rate cut at the Oct. 29 FOMC meeting, with increased speculation that there will be a coordinated global central bank intermeeting rate cut. Fed funds futures suggest a 52% chance that the fed funds rate will be cut by 75 basis points.DJ30 -369.88 NASDAQ -84.43 NQ100 -4.1% R2K -3.8% SP400 -4.4% SP500 -42.34 NASDAQ Adv/Vol/Dec 418/3.45 bln/2449 NYSE Adv/Vol/Dec 231/1.95 bln/2997

3:30 pm : The major indices are well off their worst levels, but are still posting large declines.  The Dow is down more than 4%, but has recovered nearly 400 points from session lows.

Dow Jones reported that France is proposing an Emergency G8 meeting on the financial crisis, citing Japanese newspaper Nikkei.

At recently reached session lows, the Dow, Nasdaq and S&P 500 were down 7.8%, 8.8% and 8.3%, respectively.DJ30 -417.62 NASDAQ -87.98 SP500 -46.73 NASDAQ Adv/Vol/Dec 319/2.87 bln/2529 NYSE Adv/Vol/Dec 158/1.40 bln/3069

3:00 pm : The major indices trade with steep losses near the worst levels of the session.  The S&P 500 is down 7.4%, after plunging 8.8% last Monday.

Small- and mid-cap stocks are also under pressure.  The Russell 2000 Index is down 7.8% and the S&P 400 is down 8.4%.

Selling interest is broad-based.  Of the 3,241 stocks within the NYSE, 1,718 hit fresh 52-week lows this sessions.  Only 54 NYSE stocks are posting a gain this session.

Within the S&P 500, only six stocks are posting a gain, led by Hartford Financial Services (HIG 29.29, +1.89), up 7.0%.  By percent decline, the worst performing stock is National City (NCC 2.31, -1.21), down 34.5%.  Fitch Ratings downgraded the long-term and short-term issuer default ratings of National City, citing additional asset quality problems may result as the economy weakens.DJ30 -687.04 NASDAQ -150.53 SP500 -80.08 NASDAQ Adv/Vol/Dec 138/2.40 bln/2706 NYSE Adv/Vol/Dec 54/1.21 bln/3176

2:30 pm : All three of the major indices establish fresh multi year lows in recent trade.  Selling interest is broad-based, although there has been notable weakness within financials (-8.4%).

Nine of the ten sectors have hit 52-week lows this session.  The financial sector is 3.5% above its 52-week low that was reached on July 15, with its loss limited due to the SEC implemented short-selling ban that consists of mainly financial stocks.

The S&P 500 is down more than 7%.DJ30 -727.70 NASDAQ -158.16 SP500 -84.48 NASDAQ Adv/Vol/Dec 188/2.17 bln/2648 NYSE Adv/Vol/Dec 69/1.11 bln/3149

1:55 pm : The Dow and Nasdaq hit fresh session lows and are currently trading near those levels.  Consumer staples is the best performing sector with a decline of 4.6%. Materials is the worst performing sector with a decline of 7.1%.

Airline stocks are down 14% as economic concerns outweigh the benefits of cheaper oil (-4.8% at $89.35).  The Amex Airline Index is down 49% this year.DJ30 -542.00 NASDAQ -130.32 SP500 -65.23 NASDAQ Adv/Vol/Dec 241/1.96 bln/2575 NYSE Adv/Vol/Dec 80/1.01 bln/3132

1:30 pm : Stocks continue to post steep losses in broad-based weakness.  The Nasdaq is underperforming with a loss of more than 6% as large-cap tech struggles.

eBay (EBAY 17.46, -1.48) is under selling pressure after announcing it will lay off roughly 1,000 workers, or 10% of its workforce, in an effort to increase efficiency.  The company expects third quarter revenue will come in at the low of its previous guidance, but expects earnings to exceed its previous range of between $0.39 and $0.41 per share.  eBay is acquiring Bill Me Later for $945 million and two Danish classified advertising sites for $390 million.DJ30 -511.69 NASDAQ -119.24 SP500 -61.60 NASDAQ Adv/Vol/Dec 289/1.79 bln/2512 NYSE Adv/Vol/Dec 100/945 mln/3109

1:05 pm : The session remains an ugly one for stock investors.  Each of the major indices are extending their losses, though they remain off midmorning lows. 

In the S&P 500, nearly 99% of stocks are trading lower.  All ten of the economic sectors in the S&P 500 are trading with losses in excess of 4%. 

The near complete disinterest in stocks has bolstered buying in safe havens like gold and Treasuries.  Gold is trading roughly 3.4% higher at $857 per ounce.  The 10-year Note is up a considerable 43 ticks and the 30-year Bond is up 83 ticks.DJ30 -574.26 NASDAQ -126.94 SP500 -68.10 NASDAQ Adv/Vol/Dec 272/1.66 bln/2525 NYSE Adv/Vol/Dec 89/881 mln/3117

12:30 pm : The stock market posts a large loss of more than 5% in broad-based weakness.

Citigroup (C 16.57, -1.78) is reportedly bringing a complaint against Wachovia (WB 5.61, -0.60) and Wells Fargo (WFC 33.54, -1.02) over the merger agreement between WB and WFC. Dow Jones reports that Citi is seeking more than $60 billion in damages against Wells Fargo and Wachovia.  Last week Monday, Citi announced that it was acquiring Wachovia's banking operations for $2.2 billion in a FDIC brokered deal. Last week Friday, Wachovia announced that it agreed to be completely acquired by Wells Fargo.  Citi said Wachovia had violated its exclusivity agreement.

The Wall Street Journal reported this morning that the Federal Reserve was trying to get the three banks to reach a compromise.DJ30 -480.92 NASDAQ -108.31 SP500 -56.81 NASDAQ Adv/Vol/Dec 307/1.49 bln/2481 NYSE Adv/Vol/Dec 95/802 mln/3104

12:05 pm : The Dow falls below 10,000 for the first time since 2004 as global stock markets plunge on financial and economic worries.

Buying interest in stocks is extremely limited, with decliners outpacing advancers by more than 32-to-1 on the NYSE. All ten of the economic sectors are posting a loss as the S&P 500 falls 4.8% to its lowest level since 2003.

Foreign equity markets are getting hit even harder. The Dow Jones World Average, excluding U.S., is down 7.6% as emerging markets (-9.8%) get hammered. European markets dropped at least 7%.

Weakness in Europe is driven over concerns that more bailouts of European financial institutions are needed after Germany's government stepped in to prevent a collapse of property lender Hypo Real Estate. Interbank lending in European currencies tightened as banks are highly reluctant to lend to each other.

Concerns regarding a global slowdown is reflected in commodities. The CRB Index is down 3.3% as oil prices plummet 4.5% to $89.54 per barrel.

Investor risk aversion can be seen in a flight-to-quality to Treasuries. The 10-year note is up more than a point to send its yield down to 3.47%. On a related note, gold, which is typically seen as a safe-haven, is up 4.3% to $864.60 per ounce.

Weakness in Europe is giving a huge boost to the dollar, which is up 1.5% against a basket of world currencies. The euro is down 2.1% to $1.35 and the pound is down 2.0% to $1.74.

In an attempt to improve liquidity and shore up confidence, the Fed announced this morning that it is planning to double the outstanding Term Auction Facilities (TAF) balances to $900 billion. The TAFs aim to improve liquidity by allowing depository institutions to borrow from the Fed using the same collateral that is accepted at the discount window. The Fed will also start paying interest on depositary institutions' required and excess reserve balances. The announcement failed to lift the stock market.

At midday, the Dow, Nasdaq and S&P 500 have dropped 4.1%, 5.4%, and 4.8%, respectively. London's FTSE fell 7.3%, Germany's DAX declined 7.1% and France's CAC tumbled 9.0%. DJ30 -423.85 NASDAQ -105.15 SP500 -52.25 NASDAQ Adv/Vol/Dec 318/1.31 bln/2450 NYSE Adv/Vol/Dec 97/715 mln/3094

11:30 am : The major indices post steep declines, although they have recovered from session lows.

The Dow, Nasdaq and S&P 500 are down 3.9%, 4.7% and 4.3%, respectively, after being down as much as 5.7%, 7.0% and 6.6%, respectively.

The major European markets also recovered from session lows, although they are still down at least 6.0%.DJ30 -402.30 NASDAQ -90.70 SP500 -47.65 NASDAQ Adv/Vol/Dec 362/1.16 bln/2372 NYSE Adv/Vol/Dec 132/646 mln/3034

11:00 am : The major indices extend their declines.  Buyers are not showing much interest in stocks -- declining issues outpace advancing issues by 81-to-2 on the NYSE.

European markets are now down more than 8%.

Although the financial relief bill will take time to be implemented, its passage did little to shore up confidence in credit markets over the weekend.  Dollar Libor -- the rate banks charge each other for short-term dollar loans -- slightly eased across all terms expect overnight lending, although the levels remain extremely elevated.  Meanwhile, Libor in other currencies mostly tightened, including lending in euro and pounds.

Five year credit default spreads for investment grade debt, which measures the cost to protect corporate debt for five years, rose on Friday and costs four times more than it did in 2006.

Overall uncertainty is extremely high.  The Volatility Index (VIX), which measures the expected up or down movement of the S&P 500 over the next 30 days, spiked 10.9 to 56.0 -- its highest level since at least 1990.DJ30 -476.13 NASDAQ -108.17 SP500 -58.63 NASDAQ Adv/Vol/Dec 257/893 mln/2432 NYSE Adv/Vol/Dec 76/509 mln/3079

10:30 am : The Dow drops below 10,000 for the first time since 2004. The S&P 500 is down more than 4% and the Nasdaq is down more than 5%.  Treasuries, meanwhile, are rallying in a flight to safety bid.  On a related note, gold is up 4.8% to $868.80 per ounce.

Although financials (-5.2%) are under pressure, multi-line insurer Hartford Financial Services (HIG 31.19, +3.79) is up 13.8% on news that it is getting $2.5 billion in capital from German insurer giant Allianz.  Hartford, which has more than $300 billion in assets, said it will post a loss in the third quarter and cut its quarterly dividend by 40%.  HIG tumbled 52% last week on concerns regarding its capital position.

World stock markets continue to tumble.  The DJ World Average, Excluding U.S., is down 7.1%.  Emerging markets are taking a pounding, with the MSCI Emerging Markets Index ETF (EEM) dropping 9.9%.  Brazil's Bovespa has fallen 11.2% and Russia's RTS is down 19.1%.

The dollar is rallying against European currencies, with the euro down 1.9% to $1.35 and the pound down 2.0% to $1.74.  The yen, however, is showing strength, with the dollar falling 5.4% against the Japanese currency.DJ30 -410.02 NASDAQ -98.39 SP500 -53.28 NASDAQ Adv/Vol/Dec 310/586 mln/2314 NYSE Adv/Vol/Dec 104/382 mln/2992

10:00 am : The major indices extend their opening declines, and all three have hit new multi-year lows this session.  The S&P 500 is trading at its lowest level in four years and is down 32.6% from its all-time high reached in October 2007.

All ten of the economic sectors are posting a loss in broad-based weakness.

The materials (-5.3%), energy (-5.8%) and financial (-4.1%) sectors are the main laggards.

Defensive sectors are outperforming on a relative basis, including utilities (-1.4%), healthcare (-2.1%) and consumer staples (-1.1%).

Within healthcare, biotech firm Imclone (IMCL 67.71, +2.75) is up 4.2% on word that it is being acquired by Eli Lilly (LLY 39.62, -1.69) for $70.00 per share in cash, or $6.5 billion.DJ30 -304.85 NASDAQ -75.61 SP500 -38.72 NASDAQ Adv/Vol/Dec 333/304 mln/2162 NYSE Adv/Vol/Dec 158/223 mln/2836

09:40 am : The major indices start the week sharply lower as overseas markets tumble on financial market and global slowdown concerns.

European markets are seeing notable weakness in banks on worries that more bailouts of European financial institutions are needed.  London's FTSE is down 4.9%, Germany's DAX is down 5.1%, and France's CAC is down 5.5%. Brazil's Bovespa stock index was halted after tumbling 10.1%.  Asian markets also faced selling pressure -- Hong Kong's Hang Seng fell 5.0% and Japan's Nikkei fell 4.3%.

Overseas weakness is prompting some buying in the dollar, which is up 1.3% against leading world currencies.

Commodities fall 2.0%, with oil down 2.6% to $91.48 per barrel, on global slowdown concerns.  Gold, however, is managing to rally 3.8% to $860.00 per ounce in a safe have bid.DJ30 -211.30 NASDAQ -43.31 SP500 -24.64

09:15 am : S&P futures vs fair value: -23.30. Nasdaq futures vs fair value: -33.80.  

08:58 am : S&P futures vs fair value: -22.10. Nasdaq futures vs fair value: -36.50.  

08:33 am : S&P futures vs fair value: -22.40. Nasdaq futures vs fair value: -37.50.  A sharply lower open is expected. The Fed continues to address liquidity issues, planning to eventually bring the outstanding Term Auction Facilities (TAF) balances to $900 billion from $450 billion. The TAF aims to improve liquidity by allowing depository institutions to borrow from the Fed using the same collateral that is accepted at the discount window. The Fed will also start paying interest on depositary institutions' required and excess reserve balances. Dollar Libor -- the rate banks charge each other for short-term loans -- remain at highly elevated states, but did decline slightly for all terms except the overnight lending rate.  Overnight Libor climbed 37 basis points to 2.37%. 

08:00 am : S&P futures vs fair value: -21.60. Nasdaq futures vs fair value: -31.30.  Futures point to a sharply lower open, although they are off their worst levels, as overseas markets tumble on mounting concerns over financial firms.  The need for more bailouts of European financial institutions has sent London's FTSE down 5.3%, France's CAC down 5.6% and Germany's DAX down 5.2%.  Japan's Nikkei fell 4.3% and Hong Kong's Hang Seng dropped 5.0%.  Global growth concerns are taking a toll on oil prices, which are down 4.1% to $90.08 per barrel. At the same time, gold prices rally 3.6% and the dollar climbs 1.1%.  In corporate news, Eli Lilly (LLY) is buying Imclone (IMCL) for $70 per share in cash, or $6.5 billion, trumping Bristol-Myers Squibb's (BMY) $60 per share offer.  The Federal Reserve is encouraging Citigroup (C) and Wells Fargo (WFC) to reach a compromise over the proposed takeover of Wachovia (WB), which may including dividing up Wachovia's branches, according to the Wall Street Journal.

06:45 am : S&P futures vs fair value: -20.90. Nasdaq futures vs fair value: -35.00.  

06:45 am : Nikkei...10473.09...-465.10...-4.30%. Hang Seng...16803.76...-878.60...-4.30%.

06:45 am : FTSE...4706.23...-274.00...-5.50%. DAX...5477.35...-319.90...-5.50%.

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