US STOCKS-Market slides after Bernanke testimony

* Bernanke says economy prospects “unusually uncertain”

* Morgan Stanley, Wells Fargo post strong earnings

* Indexes down: Dow 1.2 pct, S&P 1.3 pct, Nasdaq 1.3 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates with Bernanke details, comment, adds byline)

By Rodrigo Campos

NEW YORK, July 21 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) fell on Wednesday
as investors were discouraged after Federal Reserve Chairman
Ben Bernanke said the U.S. economy faces “unusually uncertain”
prospects.

In remarks to the Senate Banking Committee, Bernanke said
the Fed was ready to take further steps to bolster growth if
needed, adding to investor worries about a sluggish recovery
from recession.

“To some degree, any type of (Fed) aid would be a strong
signal that things are worse than what we think,” said Nick
Kalivas, senior equity index analyst at MF Global in Chicago.

The Dow Jones industrial average (.DJI: ) lost 117.38 points,
or 1.15 percent, to 10,112.58. The Standard & Poor’s 500 Index
(.SPX: ) fell 13.56 points, or 1.25 percent, to 1,069.92. The
Nasdaq Composite Index (.IXIC: ) dropped 28.27 points, or 1.27
percent, to 2,194.22.

Stocks fell further despite recent strong corporate
results, including those of some major banks and technology
bellwether Apple Inc (Read more about Apple stock future.) (AAPL.O: ), he said.

“The market reaction is a little puzzling and indicative of
the general caution that is on investors’ minds,” Kalivas
said.

Shares of Wall Street firm Morgan Stanley (MS.N: ) (Read more about the money market today. ) jumped 7.3
percent to $27.07 after reporting higher-than-expected profit.
Wells Fargo & Co (WFC.N: ) rose 1.4 percent to $26.69 after its
results.

Weighing on the Nasdaq were shares of Internet company
Yahoo (YHOO.O: ), down 8.4 percent at $13.93 a day after it
posted revenue that missed Wall Street’s estimates.

Investment Research

(Reporting by Rodrigo Campos; Additional reporting by Leah
Schnurr; Editing by Kenneth Barry)

US STOCKS-Market slides after Bernanke testimony