Markets Extend Losses Despite Bush's Reassurances
Despite reassurances by President Bush that the government rescue plan will stabilize the markets, panic selling sent the markets into a tailspin with the Dow skidding 411 points to 8168. Nasdaq slumped 72 points to 1573.
On the upside
XL Capital (NYSE: XL) warned that third quarter losses will range between $1 billion to $1.2 billion but reassured investors that the insurance company's book value at the end of the third quarter is expected to range between $21 to $22.50 per share.
Rumors that Apple (Nasdaq: AAPL) will introduce versions of its MacBook notebook priced under $1,000 lifted shares of the computer company.Bargain hunters snapped up shares of General Motors (NYSE: GM), which plummeted to a fifty year low yesterday.
On the downside
Tortoise Energy (NYSE: TYG) acknowledged that the value of its master limited partnership investments have plummeted 39.3% since June 1, but reassured investors that the energy infrastructure sector remains sound.
Jefferies & Co. downgraded Advanced Medical Optics (NYSE: EYE) and drastically reduced its price target after the company slashed its 2008 earnings guidance amidst a weak economy.
In the broad market, declining issues outpaced advancers by a margin of 9 to 1 on the NYSE and by molre than 4 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 20 points to 479.
