U.S. Stocks Tumble on Soured Mortgage Concerns, Apple Outlook
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U.S. stocks tumbled, dragging benchmark indexes to their biggest drop since August, amid concern banks will be forced to buy back soured mortgages and after Apple Inc. forecast profit that missed analyst estimates.
Bank of America Corp. slid 4.5 percent after people familiar with the matter said Pacific Investment Management Co., BlackRock Inc. and the Federal Reserve Bank of New York seek to make it repurchase loans packaged into $47 billion of bonds. Apple retreated 2.7 percent. International Business Machines Corp. lost 3.4 percent following a decline in new contracts. Exxon Mobil Corp. led energy companies lower as oil slipped.