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SHAUNV

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Stocks Retreat on Housing Market Worries

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Wall Street gave back early gains Wednesday as investors weighed signs of a worsening housing market against strong quarterly earnings from Amazon.com Inc. and Boeing Co.

The stock market still appeared jittery after Tuesday's 226-point tumble in the Dow Jones industrial average, triggered by a few disappointing profit reports and forecasts, notably from mortgage lender Countrywide Financial Corp.

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Some market watchers worry that the deteriorating lending climate will cork this year's huge stream of dealmaking. Still, the acquisitions keep coming: Siemens AG Wednesday said it will sell its VDO auto parts unit to Germany's Continental AG in a $15.67 billion deal.

Wall Street is trying to assess whether problems involving risky home lending will hurt the broader economy.

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Reply#1 - Wed Jul 25, 2007 11:31 AM EDT
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