NEW YORK, Aug. 18 (Xinhua) -- Wall Street erased early gains and fell Monday, as a bailout possibility of Fannie Mae and Freddie Mac rekindled concerns about the financial sector.

Investors were concerned once again about financials on negative corporate news. Fannie Mae and Freddie Mac tumbled, after Barron's said shareholders of the biggest sources of U.S. mortgage financing would be wiped out if the U.S. government might have to recapitalize the companies.

Moreover, the Wall Street Journal reported that Lehman Brothers Holdings Inc. might have to pre-announce a large loss for the third quarter.

Hershey, the U.S. largest chocolate maker, dropped nearly 9 percent, as the company increased prices to fight rising costs.

However, Lowe's Cos. rallied in morning trading, as its second- quarter earnings report beat estimates. In addition, the second- biggest home-improvement retailer also released full-year profit projection, higher than previous forecast.

The Dow Jones fell 47.96 to 11,611.94. Broader indexes also traded lower. The Standard & Poor's 500 index dipped 4.34 to 1,293. 86; and the Nasdaq fell 5.89 to 2,446.63.

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