Stocks Tanks for Second Straight Day

Britain's FTSE 100 fell 5.70 percent, Germany's DAX index fell 6.84 percent, and France's CAC-40 fell 6.38 percent. In Asian trading, Japan's Nikkei index closed down 6.53 percent, and Hong Kong's Hang Seng Index fell 7.08 percent.

Cisco's comments added to investors' nervousness and weighed on the technology-heavy Nasdaq. The world's largest maker of computer networking gear said orders declined sharply last month, suggesting to the market that the weak economy and tight credit markets are taking a larger-than-expected toll on many companies around the world. Cisco fell 31 cents, or 1.8 percent, to $17.08.

A range of industries have been bruised by the economy. Japanese automaker Toyota Motor Corp. reduced its annual earnings forecast Thursday to less than a third of what it was in previous fiscal year. Toyota tumbled $13.08, or 16.3 percent, to $67.29. Other automakers fell ahead of quarterly results due Friday. General Motors Corp. fell 70 cents, or 12.6 percent, to $4.86, while Ford Motor Co. fell 13 cents, or 6.2 percent, to $1.96.

53.53 -0.60 -1.11

Among retailers, Wal-Mart fell 60 cents to $53.53, while specialty names Limited Stores Inc. fell 98 cents, or 8.5 percent, to $10.53 and Ann Taylor Stores Corp. fell $3.17, or 26 percent, to $8.85.

The drop in oil weighed on energy stocks. Exxon Mobil Corp. fell $3.52, or 4.8 percent, to $70.17, while Chevron Corp. fell $4.64, or 6.2 percent, to $70.24.

Some names seen as safer bets in a rough economy saw more moderate selling. Procter & Gamble Co., the maker of Tide detergent and Pampers diapers, fell 49 cents to $63.32.

Hyland said the latest economic news are a reminder that while the market might be off its Oct. 10 lows following an array of government moves to revive lending and shore up confidence in the markets the medicine for the markets will take some time to work.

"I think that we're in a bottoming process but the market will tend to have three, four, or five bottoms as it goes through the bear market," he said.