Dow drops below 11,000 for 1st time in 2 years

Friday July 11, 1:00 pm ET
By Tim Paradis, AP Business Writer Stocks tumble on worries about Fannie, Freddie; Dow falls below 11,000 for 1st time in 2 years NEW YORK (AP) -- Wall Street sank further into a bear market Friday as investors dumped stocks in response to troubles at mortgage companies Fannie Mae and Freddie Mac and oil's continuing climb into record territory. The Dow Jones industrials fell more than 200 points and slid below the 11,000 mark for the first time in two years.

Investors appeared unimpressed by a statement from Treasury Secretary Henry Paulson, who said the government's focus is ensuring that Fannie Mae and Freddie Mac remain as presently constituted to carry out their mission. Some investors had been hoping that the government would announce plans to take over one or both of the companies.