Stocks Slump on Higher Oil, Fannie Mae(oil $48/barrel)

[RedEarth]

NEW YORK (Reuters) - Stocks fell sharply on Wednesday after oil prices jumped more than a dollar and a U.S. government review questioned home finance company Fannie Mae's (NYSE:FNM - news) accounting methods.


Blue chips fell to the lowest level in three weeks.


Investment bank Morgan Stanley (NYSE:MWD - news) and brokerage Bear Stearns Companies (NYSE:BSC - news) reported declines in quarterly profits. And a brokerage downgrade on Cisco Systems Inc. (Nasdaq:CSCO - news) hurt tech stocks.


"The market is very weak," said Todd Leone, head of listed trading at S.G. Cowen & Co. "Oil is up again and then you have Fannie Mae, Morgan Stanley and Bear Stearns putting a little pressure in the market."


U.S. crude oil prices rose more than a $1 to $48 a barrel. The U.S. government reported a sharper-than-expected fall in weekly crude inventories following disruptions in supply due to Hurricane Ivan last week.

http://story.news.yahoo.com/news?tmpl=story&ncid=578&e=6&u=/nm/20040922/bs_nm/markets_stocks_dc

[BlueEyedSon]

1. Don't forget the Fed rate hike