DJ xuống do lo ngại CP Mỹ cắt giãm trợ cấp mua nhà

DJ xuống do lo ngại CP Mỹ cắt giãm trợ cấp mua nhà

Oct. 26 (Bloomberg) -- U.S. stock fell, erasing an early rally, on concern the government will phase out a tax credit for homebuyers and Bank of America Corp. will have to sell shares to pay back its government bailout. The dollar rebounded from a 14- month low against the euro and oil wiped out an early advance.

Eleven of twelve shares in a gauge of builders slid after ISI Group Inc. said lawmakers may reach an agreement to phase out the tax credit for first-time homebuyers. Bank of America sank 5.6 percent as the Wall Street Journal said some government officials want the company to raise more capital. Fifth Third Bancorp, SunTrust Banks Inc. and U.S. Bancorp tumbled after Rochdale Securities LLC analyst Dick Bove downgraded the shares.

â?oThere is more bad news than good news for financials,â? said Art Hogan, the New York-based chief market analyst at Jefferies & Co. â?oInvestors had been expecting that tax credit for homebuyers to be extended. If it doesnâ?Tt happen, it might take longer for the economy to recover. Investors are reacting to that.â?

The S&P 500 rose 0.9 percent to 1,070.13 at 12:23 p.m. in New York. The Dow Jones Industrial Average retreated 83.28 points, or 0.8 percent, to 9,888.9. Three stocks declined for each that rose on the New York Stock Exchange.

Equities rallied earlier, sending the S&P 500 up as much as 1.1 percent, as investors grew more confident that better-than- estimated profits will fuel further equity gains.

To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net

http://www.bloomberg.com/apps/news?pid=20601087&sid=alqYE_bhn70E
Last Updated: October 26, 2009 12:25 EDT