Business Update: Stocks languish

February 25, 2009

U.S. stocks fell sharply on Wednesday after a surprise slide in existing home sales and further signs of strain in the banking sector renewed economic jitters. The selling pressure was also revived by disappointment with President Obama's speech late-Tuesday. Investors were hoping for further details on his economic improvement and bank rescue plans. A surprise drop in January existing home sales added to the market's downfall. SPEAKER : Milton Ezrati, senior economist/market strategist, Lord Abbett Conway Gittens reports from New York.