NEW YORK - Wall Street pulled back Wednesday, sending the Dow Jones industrials down more than 160 points on Merrill Lynch & Co.'s severe credit-related losses and a sharp September drop in existing home sales.
The market got one of its most-feared scenarios: Not only is the housing implosion dampening corporate profits, it's accelerating.
Merrill said it wrote down $7.9 billion in fixed-income instruments called collateralized debt obligations and from defaulting subprime mortgages - more than the $5 billion writedown the investment bank estimated earlier this month. The result was a net loss for the quarter of $2.3 billion.
The worse-than-anticipated loss …
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