US stocks ended lower on Wednesday as fears grew about the world economy and company profits.

Terrible trading news from plane making giant Boeing, which forced the group to announce a total of 48,000 job cuts, stunned traders and caused shares in aerospace stocks to collapse.

Boeing's shares ended down $6 13/16 to $33 11/16 after the world's largest aerospace company said the economic crisis in Asia meant it would have to slash production.

It also warned that the Asian financial turmoil could continue to hit its business for up to five years. This prompted wider fears about company profits across the US, and the threat of a recession.

Retailing giant Sears added to the market gloom by warning that sales could be poor over the crucial Christmas trading period.

The Dow Jones Industrial Average ended down 69 points at 9,064.54.

It could have been a lot worse. In early trading the index slumped by nearly 180 points as investors sought to lock in profits after a strong run in prices over the past few months.