EMAIL DETAILS

Just to highlight - market is so nervous that when someone of seeming
authority makes a statement it really rattles the markeet. It is
likely that he has no direct information and would have been better
served being cautious than making a claim of knowledge.

US Stocks Sink After EU Energy Chief Warns On Nuclear Crisis
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By Kristina Peterson and Jonathan Cheng
Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--U.S. stocks sank deeper into the red on
Wednesday after the European Union's energy chief warned of "possible
catastrophic events" at Japan's nuclear plants.

Swinging in choppy trading, the Dow Jones Industrial Average tumbled
99 points, or 0.8%, to 11756, with all but two of its 30 components in
the red.

The Nasdaq Composite sank 0.8% to 2646, dropping into negative
territory for the year. The Standard & Poor's 500-stock index dropped
0.7% to 1273, with only the energy sector posting slight gains.

Stocks deepened modest losses on Wednesday after Guenther Oettinger,
the European Union's commissioner for energy, told a European
Parliament committee that a nuclear power plant in Japan is
"effectively out of control," and that the situation could continue to
deteriorate.

"In the coming hours there could be further catastrophic events which
could pose a threat to the lives of people on the island," he said.

Traders said the remarks fanned anxieties simmering in the market.

"I think it's this word of a catastrophic nuclear event--we're still
sniffing out," said Joseph Saluzzi at Themis Trading LLC. "In this
type of market this news moves quickly--flash crash type stuff."

The market gradually pared its losses as traders digested the remarks
as analysis, rather than breaking news.

"We were slightly negative in the stock market, but it wasn't the end
of the world. And then an energy expert or official in the EU says,
'Hey, the situation in Japan is out of control,'" said Jeffrey
Friedman, senior market strategist at Lind-Waldock, a division of MF
Global. "I thought it was a bad way to go--a guy in Europe saying it's
out of control with no specifics. Everybody's kind of nervous, we're
not getting enough specific information out of Japan, and then this
guy comes out with a statement, how do you take it? 'Out of control'
from what--two days ago, four days ago, a development in the last 15
minutes?"

Stocks had already posted modest losses on Wednesday after housing
starts showed the steepest monthly drop in nearly 27 years and new
building permits set a record low, an indication that the battered
sector continues to be a source of weakness for the economy.

In the Middle East, Bahraini security forces carried out a crackdown
on protester strongholds in Pearl roundabout and the financial
district of the capital Manama early Wednesday, a day after the
island's king declared emergency law.

Housing stocks were lower after the disappointing home construction
data; PulteGroup fell 0.7%, Lennar dropped 1.4% and Toll Brothers lost
0.8%.

Rambus added 5% after the technology company said Toshiba has renewed
a five-year licensing agreement.

Trucking company YRC Worldwide's stock plunged 20% after the company
said in a filing with the Securities and Exchange Commission that it
missed a deadline in its restructuring process and noted a possibility
of seeking bankruptcy protection.

Teen retailer Pacific Sunwear slumped 15% after the company projected
a larger-than-expected loss for the current quarter.

Insurer Ace rose 0.5% after the company said it expects first-quarter
after-tax losses related to the Japanese earthquake to range between
$200 million and $250 million.

Weatherford fell 0.8% after the oilfield services company blamed
disruptions in the Middle East and North Africa and weather-related
issues as it cut its first-quarter earnings projection.

Demand for Treasurys was higher, with the yield on the 10-year note
falling to 3.28%.

In separate U.S. data Wednesday morning, wholesale prices surged last
month on the back of higher energy and food prices, but underlying
producer prices increased only moderately. A third data release showed
exports of oil and food by the U.S. helped narrow its current-account
deficit at the end of 2010.

-By Kristina Peterson, Dow Jones Newswires; 212-416-2917; kristina.peterson@dowjones.com

--Brendan Conway contributed to this article.