U.S. stocks slip on fears financial sector needs money

Wall Street closed lower on Monday after a wave of concern over mortgage providers' capital adequacy spoiled an early stocks rally triggered by a plunge in commodity prices led by oil. In volatile trading, investors bailed out stocks after Lehman Brothers reported that Fannie Mae and Freddie Mac may need to raise more capital. The dollar also rose at first but later fell against the euro and erased gains versus the yen on the concerns over the health of the financial sector. Crude oil fell below the $140 mark before settling down almost $4 on profit taking from last week's record high and signs that Iran may be more flexible in negotiations over its nuclear program. A wide range of commodities fell, including soy and corn. U.S. government debt rallied and erased early losses as a stock reversal revived the bid for safe-haven... [read full story]