Stocks Fall Lower

As predicted, stocks started off September in negative territory. Investors took a big step back as uncertainty over financial companies' health prompted a sell-off. Some of the biggest decliners in the financial sector included Bank of America (BAC), American Express (AXP), and JPMorgan Chase. The Dow Jones Industrial Average gave up 185.68 points to finish at 9,130.60. Broader stock indicators didn't fare much better. The S&P 500 lost 998.04 points and the Nasdaq shed 40.17 points. A bag of mixed economic reports on housing, manufacturing, and auto sales did little to stage a turnaround. European markets tumbled, while Asian markets ended higher. U.S. light crude oil for October delivery fell $1.91 to settle at $68.05 a barrel on the New York Mercantile Exchange. Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.37% from 3.40%

News You Should Know

ebay Inc. (EBAY) has finally decided to hang-up on Skype. The online auction company will sell a 65% stake in the money-losing Internet phone service to a private investment firm . Its internet-telephony unit has been nothing but a headache since its purchase. All things considered, the company managed to get an amazing price for the majority stake in Skype.

Did eBay Make a Profit on Skype Or Not?

Video - eBay CEO on Skype Sale

An alleged member of an identity theft ring that claimed Federal Reserve Chairman Ben Bernanke as a victim has been captured .

CIT Group, Inc. (CIT) is trying every trick in the book to avoid a bankruptcy protection filing. The troubled lender has now decided to defer interest payments on some outstanding junior notes due in 2067. The company has repeatedly said that it may have to file for bankruptcy protection if its restructuring plan fails. Since the company can't sell its own stock, why should you own it ?

Bank of America (BAC) is following in the footsteps of Goldman Sachs (GS). The bank is trying to pay back some of the billions that it received under TARP. It looks like BofA may be trying to get from underneath the government's thumb, but some are suggesting that the bank may be trying to pull a fast one .

Now that the Cash for Clunkers program is over, can auto sales remain strong ?

Get ready to be inconvenienced by Southwest Airlines (LUV). The airline has decided to cut 42 round-trip flights but add another 32 round-trip flights for schedules that run from Jan. 10 through March 12.

Snapshot of the Economy

Pending sales of existing homes rose for the sixth straight month in July, according to the National Association of Realtors. This is pretty good news, but some analysts don't believe that housing will lead the U.S. out of its recession. In other housing news, the beachfront pad where Wall Street super fraud Bernard Madoff used to kick back and blow people's hard earned money will go up for sale this week. If you have $8.75M lying around, it can be yours.

Video - Pending Home Sales Soar to 2-Year High

The Housing Recovery Mirage

You thought $3B for the Cash for Clunkers program was expensive ? That program sounds like a bargain compared to the $16 billion the US will have to shell out for the housing tax credit.

Manufacturing data appears to be pointing in the right direction. The US manufacturing sector grew in August for the first time in 19 months. The index may have shown growth, but what it doesn't point out is that manufacturing is at such a low level that even cash for clunkers is enough to bump it up for a short time period.

Construction spending went in the opposite direction in July. The Commerce Department said Tuesday that construction spending dipped 0.2 percent in July, which was much worse than the flat reading that economists were predicting.

Is the state of Virginia doing something right? The Virginia Employment Commission reported Tuesday that the seasonally unadjusted rate of unemployment fell from 7.3 percent in June to 6.9 percent in July. Maybe some other states should take notes.

Unemployment: The Worst Hit Cities in July

Other Juicy Tidbits

Earlier this year , people were in an uproar about executives receiving outrageous compensation during a recession. Now that health care is in focus, the House energy panel has asks 52 companies to cough up info on everyone who makes more than $500,000 a year. Is health care the next 'bonusgate' ?

With all the hoopla about big government and its impact on the economy, it's easy to miss the fact that some government programs are paying off .

How to Profit from a Fearful September

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