Hasn't the words 'bond insurance' been the magic ones to spark a selloff lately? Such has been the case last week; such has been the case yesterday and it seem like it might be the case again today after MBIA reported a $2.3 billion loss. Stock futures were lower, indicating a similar start for stocks a day after the Federal Reserve has cut rates yet again by half a point. Today, investors can expect to digest much earnings and economic data.

On Wednesday, stocks moved without much of a direction until the Fed announced the rate cut. Wall Street jumped with glee in response with the Dow industrials gaining over 100 points. But then concerns about the bond insurance industry resumed. These companies insured securities backed by mortgages and other loans made to borrowers with weak credit and were hence hit hard by the subprime meltdown. Yesterday, investors feared a possible credit ratings fall, which could trigger further write-downs from companies that hold the insurers' securities. The Dow industrials ended 37 points lower, or 0.30%, the S&P 500 dropped 6.5 points, or 0.48%, and the Nasdaq Composite lost 9 points, or 0.38%.

Not alleviating much these concerns, bond insurer MBIA (NYSE: MBI) reported its fourth-quarter results, posting a net loss of $2.3 billion, or $18.61 per share, that was far worse than forecasts of a loss of $2.97 per share for the quarter. The loss was due primarily to a $3.5 billion writedown on its portfolio of insured credit derivatives. The company raised $1 billion through the offering of surplus notes and another $500 million through a direct investment by private equity firm Warburg Pincus. MBI shares, which already closed down 12.64% Wednesday, are trading down 4.3% in premarket action.