Financial stocks fell, to a Fortune

Financial stocks fell, partly due to a Fortune story that raised the possibility the mortgage lender could be masking the true magnitude of credit-related hits to its profits. Fannie Mae executives, in a conference call with Wall Street analysts, defended a change in the way the largest U.S. buyer and backer of home loans calculates losses on home loans.

Giving investors further reason for worry, FedEx Corp. lowered its earnings expectations for the fiscal second quarter and full year and Starbucks Corp.

But tech stocks fared better. Investors have at times viewed technology companies as likely to fare better during an economic downturn than some groups such as retailers. Cisco Systems Inc., the world’s largest network equipment company