[R]2:30 PM New York – U.S. stocks traded lower after the Fed and Treasury asked the Congress’s permission to pump capital into two troubled mortgage agencies.[/R]

Dow Jones Industrial Average fell 33.46 or 0.3% to 11,145.65 and S&P 500 dropped 8.48 or 0.70% to 1,230.96.

Dow Gainers and Losers

Of the 30 stocks in Dow Jones Industrial Average 28 gained and 2 declined.

General Motors led the decliners in the Dow Jones Industrial Average with a loss of 0.61% or $0.06, to $9.86 followed by losses in Hewlett-Packard of 0.05% or $0.02, to $41.57.

AIG led the gainers in the Dow Jones Industrial Average index with a rise of 2.35% or $0.54, to $23.62 followed by increases in Bank of America of 1.94% or $0.42, to $22.09, in of 3M Company 1.78% or $1.22, to $69.94, in Intel Corp of 1.70% or $0.35 to $20.99 and in Walt Disney Co of 1.68% or $0.49 to $29.69.

Stock Movers

Apple Inc stock rose sharply after it sold in the first three days more than one million iPhone 3G phones. Apple rose $2.47 to $175.04. Apple (AAPL: chart) in the last one year traded as high as $199.83 in December 2007 and as low as $117.05 in August 2007. Based on the yesterday’s closing price the company has a market cap of $156.20 billion.

Zions Bancorp (ZION: chart) fell $5.10 after Goldman Sachs lowered its dividend outlook on the bank and others including SunTrust, Bank of America and Comercia Inc. SunTrust dropped $1.81, Bank of America fell 97 cents to $20.70 and Wachovia plunged $1.17 to $10.36.

Yahoo! Inc dropped $1.06 $22.48 after it rejected overtures for a revised bid from Microsoft and pressures from an activist investor Carl Ichan. Yahoo Inc (YHOO: chart) in the last one year traded as high as $33.63 in October 2007 and as low as $19.18 in January 2008. Based on the yesterday’s closing price the company has a market cap of $30.94 billion.

AMR Corp, the parent of American Airlines dropped 25 cents to $4.51 and UAL Corp, the parent of United Airlines dropped 7 cents to $3.56. UAL Corp (UAUA: chart) in the last one year traded as high as $51.49 in October 2007 and as low as $3.50 in July 2008. Based on the yesterday’s closing price the company has a market cap of $3.50 billion.

S&P Movers

Of the stocks in S&P 500 index, 419 gained, 79 declined and 2 remained unchanged.

Zions Bancorp led the decliners in the S&P 500 index with a loss of 8.80% or $2.26, to $23.43 followed by in losses in Allied Waste of 4.67% or $1.71, to $34.90, in Waste Management of 3.85% or $1.71, to $34.90, in National City Corp of 3.85% or $0.17, to $4.25 and in Yahoo Inc of 3.31% or $0.78, to $22.79.

Fannie Mae led the gainers in the S&P 500 index with a rise of 18.63% or $1.91, to $12.16 followed by increases in MGIC Investment Corp of 18.07% or $0.75, to $4.90, in Freddie Mac of 14.58% or $1.13, to $8.88, in Allegheny Tech of 10.64% or $5.36 to $55.71, and in Macy’s Inc of 9.56% or $1.49 to $17.07.