Stocks continued their losing ways today as wholesale prices rose faster than economist's estimated and fears deepened concerning a national banking disaster. The DJIA gave back -130.43 to 11348.43, the Nasdaq fell -32.62 to 2384.36 and the S&P 500 experienced its steepest 2-day decline since June collapsing -11.87 to 1266.73.
Lehman Brothers ( LEH | Quote | Chart | News | PowerRating) plunged 12.84% or $1.93 to $13.10/share on extremely negative sentiment and a statement from Kenneth Rogoff, the former chief economist of the IMF and present Harvard economic professor that large US banks may fail due to the housing slump and credit crisis. In addition to potentially having to write down $4 billion in credit related investments in the third quarter.
American International Group ( AIG | Quote | Chart | News | PowerRating) led the DJIA lower today falling 5.74% or $1.25 to $20.36/share on the potential of being forced to pay $20 billion due to being on the wrong side of credit-default swaps sold to protect fixed income investors.
Exxon ( XOM | Quote | Chart | News | PowerRating) climbed 1.86% or $1.42 to $77.95/share due to the unexpected oil rally.
WellCare Health Plans ( WCG | Quote | Chart | News | PowerRating) countered the market's negativity today climbing 10.80% or $4.13 to $42.37/share due to reaching a settlement with US prosecutors in a Medicaid fraud case.
Oil climbed $2.22 to $115.09/barrel, gold added $15.40 to $821.10/oz and the VIX advanced 1.48% to 21.29.
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