Markets Plunge on Economic and Corporate Worries

Stocks erased yesterday's gains as gloomy outlooks from American Express, and a number of retailers, increased concerns the U.S. economy will slip into recession. The Dow fell 246 points (-1.9%), while the S&P dropped 19 points (-1.35%).

Bank of America (BAC | Quote | Chart | News | PowerRating) agreeed to acquire troubled mortgage lender Countrywide Financial (CFC | Quote | Chart | News | PowerRating) for $4 billion in stock (read more). BAC shares fell 2.4%, while CFC shares fell 18.0% today, after surging 52% yesterday when the news first broke.

American Express (AXP | Quote | Chart | News | PowerRating) shares fell by almost 10% after the company announced it will take a $440 million Q4 charge (read more).

Tiffany & Co. (TIF | Quote | Chart | News | PowerRating) reported a 1% rise in December same-store sales, and a 8% rise in worldwide sales. However, the company lowered its full-year outlook (read more). TIF shares plunged on the news, down 11.9% on the day.

Best Buy (BBY | Quote | Chart | News | PowerRating) reported December same-store sales rose 1.5% and backed its full-year outlook (read more). BBY shares dropped just over 5% in today's session.

Amazon.com (AMZN | Quote | Chart | News | PowerRating) fell 2.6% after news the company lost a lawsuit brought by Basis Technology related to Amazon's business in Japan (read more).

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