US STOCKS-Wall St slides as mortgage worries hit banks

* Concerns resurface over mortgage foreclosures

* Apple, IBM slide after earnings

* China raises interest rates in bid to cool economy

* Indexes down: Dow 1.7 pct; S&P 1.7 pct; Nasdaq 1.8 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to early afternoon, changes byline)

By Edward Krudy

NEW YORK, Oct 19 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) declined on
Tuesday as banks shares slid on fears Bank of America (BAC.N: )
may be forced to buy back mortgages, while Apple (AAPL.O: ) and
IBM (IBM.N: ) fell after their results disappointed investors.

Bank of America shares fell 2.6 percent to $12.03 after a
Bloomberg report, citing people familiar with the matter, said
investors PIMCO and BlackRock as well as the New York Federal
Reserve Bank were seeking to force the lender to repurchase $47
billion in mortgage bonds.

Concerns that mortgage lenders did not follow due diligence
when securitizing mortgages have led some banks, including
Bank of America, to halt mortgage foreclosures. The KBW bank
index (.BKX: ) fell 1.1 percent.

“This is more octane for the sell-off,” said Todd
Schenberger, managing director with LandColt Trading in
Wilmington, Delaware. “You would think all the financials may
have to do this going forward.”

The Dow Jones industrial average (.DJI: ) was down 185.05
points, or 1.66 percent, at 10,958.64. The Standard & Poor’s
500 Index (.SPX: ) was down 19.64 points, or 1.66 percent, at
1,165.07. The Nasdaq Composite Index (.IXIC: ) was down 45.13
points, or 1.82 percent, at 2,435.53.

Apple’s shares fell 2.8 percent to $308.86 and, although
well off the day’s lows, weighed on the Nasdaq after iPad sales
fell short of some analysts’ expectations. For details, see
[ID:nN18288374]. Only the day before, Apple shares hit a
lifetime high.

International Business Machines Corp was lower after it won
fewer technology service deals than expected in the third
quarter. Its shares were down 3.9 percent at $137.21, even
though it announced stronger profits and raised its full-year
outlook. [ID:nN18152165].

Another factor weighing on Wall Street was China’s decision
to hike interest rates, effective on Wednesday. Investors worry
about the impact from the world’s biggest fast-growing economy
seeking to cool its growth. [ID:nSGE69I0HU].
(Reporting by Edward Krudy; Additional reporting by Richard
Leong; Editing by Kenneth Barry)

US STOCKS-Wall St slides as mortgage worries hit banks