U.S. Stocks Tumble, Led By Financials as Mortgage Slump Worsens (Nick Baker)

  U.S. stocks tumbled the most since a global rout two weeks ago, erasing three days of gains, after delinquencies on all types of home loans rose and retail sales climbed less than forecast.

  March 13 (Bloomberg) -- U.S. stocks tumbled the most since a global rout two weeks ago, erasing three days of gains, after delinquencies on all types of home loans rose and retail sales climbed less than forecast.

  Bear Stearns Cos. and Lehman Brothers Holdings Inc., two Wall Street firms that repackage mortgages into securities, led declines among all 88 financial stocks in the Standard & Poor's 500 Index on concern a home lending crisis is spreading across the economy. Homebuilders slumped the most since November 2005, while Moody's Corp., which rates collateralized debt obligations, had its biggest drop in a year.

  The declines cut short a recovery in the stock market since its biggest plunge in four years Feb. 27. The Dow Jones Industrial Average lost more than 200 points and the S&P 500 Index recorded its first decline in four days.

  ``These things basically raise concern about whether we're slipping into a recession,'' said Kevin Bannon, who oversees $120 billion as chief investment officer at Bank of New York Co. ``If this really does turn into a nasty downturn in housing, no one really knows what the implications for the economy will be.''

  The S&P 500 slid 26.14, or 1.9 percent, to 1380.46 at 3:16 p.m. in New York. All 10 of its industry groups declined.

  The Dow Jones Industrial Average sank 218.46, or 1.8 percent, to 12,100.16 and the Nasdaq Composite Index retreated 44.54, or 1.9 percent, to 2357.75.

  Goldman Sachs Group Inc., the world's largest securities firm by market value, fell even after it reported about 34 percent more profit than analysts expected.

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