January 23, 2009

Stocks closed sharply lower yesterday on more bad news about earnings and increasing worries about the banking industry. The Dow Jones industrial average fell as much as 271 points, came close to breaking even, then slumped before closing down 105.

Microsoft Corp. set the tone for the day. It surprised investors yesterday morning by reporting its fiscal second-quarter earnings early - and the news was not good. The software giant posted an 11 percent drop in profit and said it would slash 5,000 jobs over the next 18 months.Uneasiness about financial companies still plagues investors, and many bank stocks took another beating yesterday.