Stocks Start the New Year with Heavy Losses

Stocks declined on the first trading day of 2008 after the ISM report showed a contraction in manufacturing activity last month. Early gains turned to large losses across the major indices shortly after the report's release.

National City (NCC | Quote | Chart | News | PowerRating) cut its quarterly dividend and shutdown its wholesale mortgage unit (read more).

PHH Corp. (PHHW | Quote | Chart | News | PowerRating) announced the termination of its merger agreement with General Electric Capital Corp., a unit of General Electric (GE | Quote | Chart | News | PowerRating) (read more).

VeriFone (PAY | Quote | Chart | News | PowerRating), which on Monday delayed filing its annual report, is among the largest decliners on the NYSE today (read more).

BJ's Wholesale Club (BJ | Quote | Chart | News | PowerRating) is also sharply lower after the company was downgraded by JP Morgan (read more).

Crude oil rose above $98 per barrel, and gold surged, nearing $852 per ounce, as the U.S. dollar fell.