UPDATE 2-US banks, brokers shares fall on subprime woes

(Reuters) - NEW YORK, July 10 - The shares of U.S. commercial
and investment banks fell on Tuesday after two bond rating
agencies started to downgrade billions of dollars of securities
backed by subprime bonds, triggering concerns that bond sales
and lending businesses could slow.




Declines were led by banks perceived to have high exposure
to mortgages and other fixed income businesses, including
Lehman Brothers Holdings Inc. , which fell 5 percent,
and Bear Stearns Cos. , which fell as much as 4.1
percent.


Read more at Reuters.com Bonds News

S&P 500 Posts Biggest Weekly Slide Since March Amid Mortgage-Bond Concerns

(Bloomberg) -- U.S. stocks dropped and the
Standard and Poor's 500 Index posted its biggest weekly
slide since early March on concern that banks will be
saddled with losses on mortgage bonds.

Bear Stearns Cos., Lehman Brothers Holdings Inc. and
Goldman Sachs Group Inc. led financial shares lower after
the near collapse of a Bear Stearns hedge fund spurred
speculation that investors will have to write down the
value of securities containing subprime mortgages.
Homebuilders in S&P indexes plunged for a fourth straight
week after a gauge of builder confidence fell to a 16-year
low and home starts declined.


Read more at Bloomberg Stocks News

Abercrombie, Blackstone, Chipotle, EBay, Jabil, TiVo: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed yesterday. Stock symbols are in parentheses after company
names.

Abercrombie & Fitch Co. (ANF US) fell $3.56, or 4.7 percent,
to $73.02. The casual clothing retailer for teens and college
students was cut to ``equal weight'' from ``overweight'' at
Lehman Brothers Holdings Inc. The company's same-store sales
could decline in the second and third quarters, and a later back
to school period could result in a ``disappointing'' July,
analysts wrote in a note.


Read more at Bloomberg Stocks News

Credit-Default Swap Index Based on U.S. High-Yield Loans Rises on Debut

(Bloomberg) -- A credit-default swap index based on
the U.S. high-yield, high-risk loan market rose in its first day
of trading as hedge funds and other investors used the contracts
to bet on the ability of companies to repay their bank loans.

The LCDX index rose about 0.6 to 100.6 as of 10:59 a.m. in
New York, according to prices from Lehman Brothers Holdings Inc.
An increase in the index suggests improvement in the perception
of credit quality; a decrease signals the opposite.


Read more at Bloomberg Bonds News