Financial stocks tumbled again Thursday as the Dow Jones industrial average entered bear territory.
Brokerage and investment bank stocks were hit hard after Charles Schwab Corp. announced that it will slash its work force as much as 13% and fall short of its first-quarter earnings projections (see story, page 1). Schwab shares fell 4.4%, to $15.20, and Morgan Stanley Dean Witter & Co. fell 2.54%, to $53.25, this the day after Morgan Stanley and the two other big investment banks - Lehman Brothers and Bear Stearns Cos. - announced double-digit declines in first-quarter profit. Shares of commercial banks with big capital markets businesses also plummeted Thursday. Citigroup Inc. fell 3.91%, to $40.60, and J.P. Morgan Chase & Co. 3.21%, to $38.91. Both are components of the Dow average.