IBD's Top 10 - Wednesday

• Investor's Business Daily
• On 7:03 pm EDT, Wednesday October 28, 2009

Stocks Continue To Deteriorate

1 Investors fled following a weak housing report, with leading stocks among the worst hit for a 2nd straight day. The Dow tumbled 1.2%, the S&P 500 2%, the NYSE composite 2.4% and the Nasdaq 2.7%. All but the Dow closed below their 50-day lines for the first time since mid-July. Volume rose. All 197 IBD groups fell Wed. in the broad, sharp sell-off.

Surprise: New-Home Sales Fall

2 They slid 3.6% to an annualized 402,000, defying views for 440,000. The looming end of the homebuyer tax credit may have hurt -- but Senate Dems on Wed. reached a deal to extend and expand the credit beyond 1st-time buyers. Mortgage applications sank 12.3%, the 3rd straight weekly fall. But durable goods orders rose 1%, led by spiking machinery demand.

House Set To Release Health Bill

3 House Dems plan to release their sweeping proposal Thu. with a price tag over $1 tril. It would include a tax surcharge on the rich, hefty fines on firms that don't provide coverage to workers and slash Medicare by $500 bil. It includes a public option, but not as strong as liberals wanted. There are key differences with the Senate proposal.

Buck, Bonds Wax As Oil Wanes

4 The dollar rose for a 4th day vs. the euro as weak housing data raised recovery fears. Crude sank $2.09 to $77.46 on the stronger buck -- and as U.S. gasoline stockpiles unexpectedly rose 1.6 mil barrels. Bonds rose for a 2nd day, despite the auction of $92 bil in Treasuries this week. A $31 bil auction of 7-year notes is set for Thu.

Pakistan Car Bombing Slays 100

5 A car bomb struck a market in the NW city of Peshawar, killing mostly women and children -- as visiting Sec'y of State Hillary Clinton pledged U.S. support for Islamabad's campaign vs. Islamic militants. Over 200 people were hurt in the deadliest blast in 2 years. The gov't blamed terrorists amid an army offensive vs. al-Qaida and Taliban in their stronghold close to the Afghan border.

U.N. House In Kabul Attacked

6 Taliban terrorists wearing suicide vests and police uniforms stormed a guest house used by U.N. staff in the Afghan capital, leaving 12 people dead -- 6 U.N. staff, 2 security guards, 1 Afghan civilian and 3 attackers. It was the biggest in a series of attacks aimed at undermining Dec.'s runoff election. Other assaults included rocket attacks at the presidential palace and a hotel.

Pay Czar: I've Got Enough Power

7 The Obama administration's pay czar who cut pay for execs at 7 big companies that got huge taxpayer bailouts doesn't want broader powers over the rest of the fin'l sector. But Kenneth Feinberg told lawmakers that his standards should guide other firms. He vowed to rework AIG's infamous bonuses. The Fed, separately, last week proposed reviewing and even vetoing banks' pay plans.

SAP's Grim Outlook Saps Shares

8 The German business software giant's Q3 EPS per share ex items came out to 59 cents, edging past views. Revenue fell 10% to $3.58 bil, above views. SAP (NYSE:SAP - News) now expects software and service revenue to fall 6%-8% this year. In July, it forecast a 4%-6% decline. That outlook sent SAP shares down nearly 10% to 46.11.

Panel OKs Ratings Agencies Bill

9 Credit ratings agencies would face tighter regulation and more exposure to lawsuits. Moody's (NYSE:MCO - News), McGraw-Hill's (NYSE:MHP - News), S&P and Fitch have been slammed for giving AAA ratings to securities tied to subprime mortgages. The House Financial Services panel bill aims to curb conflicts of interest and directs agencies to put 2 outsiders on their boards.

Norway Ups Rates, 1st In Europe

10 Norway's central bank hiked rates by a quarter-point 15 1.5%, the first interest rate increase in Europe since the global financial crisis bit a year ago. It signaled more tightening to come as the economy recovers. Higher crude prices have helped oil-rich Norway. Commodity-rich Australia hiked rates earlier in Oct. The U.S., U.K. and euro zone are unlikely to hike rates soon.

Buzz up!