Dark clouds gather over Wall Street

Dow futures fall sharply on credit, recession fears as investors await Paulson remarks. Dollar plunges, oil holds near record high.

Stocks can't do 2 in a row

Wall Street abandons attempt to rise for the second session in a row as record oil and gas prices knock out early enthusiasm.

• New update: Blue River, a Colorado-based hedge-fund manager specializing in municipal bonds, is closing its main fund after nearly 80 percent losses, even after raising $110 million for a new fund, the FT said.
  

• New update: 3 more large hedge-fund firms,including Drake Management LLC, a $12 bio NY manager, have closed down or suspended investors' withdrawals because of the credit squeeze, the Financial Times reported. GO Capital Asset Management BV, an $870 million Amsterdam-based hedge fund, which has fallen 7.7 percent this year,blocked clients from withdrawing cash from one of its funds, the FT said.
  

• New update: Carlyle Capital says lenders to take possession of assets, remaining debt "soon to go into default"...USD was sold on this. USDJPY went new low at 100.21. GBPUSD high at 2.03209. EURUSD high at 1.5586.