News update: Markets Down on Citi Fears

It was another rough day for Wall Street, as share prices plummeted on the news that Merrill Lynch had lowered its annual earnings prediction for Citigroup again, after an executive at the Dubai fund responsible for the recent cash infusion at Citi said that the bank would need to raise more cash to stay afloat and an analyst projected another $15 billion in mortgage-related write-downs.

However, the market on Tuesday closed with mixed results as some investors raced to snap up stocks with attractive valuations amid rumors of a bond insurer bailout that might stave off big troubles in that industry.

It wasn’t all bad news, as tech stocks were looking up after Cisco’s CEO made some optimistic comments about the tech giant’s ability to meet long term growth projections.

On the day, the Dow Jones industrial average fell 45.10, or 0.37 percent, to 12,213.80, after falling more than 200 points earlier on Tuesday.