Economic Projections Lowered, Markets Sink
The Dow Jones Industrial Average slumped below 8,000 for the first time in five years as the Fed lowered its economic activity projections for this year as well as next year. The blue chip index skidded 427 points to 7997 while Nasdaq collapsed 97 points to 1386.
On the downside
Although GenVec (Nasdaq: GNVC) reported upbeat trial results for its pancreatic cancer treatment, analysts were concerned about a rising hazard ratio in subsequent studies.
Lincoln National (NYSE: LNC) will not raise common equity and has requested permission to acquire individual savings and loans in order to qualify for the $700 billion capital infusion program.
Standard & Poor's Ratings Services downgraded Ambac Financial's (NYSE: ABK) bond insurance unit and debt ratings.
Concerns that Hartford Financial (NYSE: HIG) may be exposed to significant losses from mortgage investments weighed down shares of the insurer.
Reddy Ice Holdings (NYSE: FRZ) warned that it may be delisted from the NYSE after it's market capitalization dropped below $75 million for 30 consecutive trading days.
La-Z-Boy (NYSE: LZB) widened second quarter losses as revenue tumbled prompting the furniture maker to announce the elimination of 850 positions.
In the broad market, declining issues overwhelmed advancers by a margin of more than 11 to 1 on the NYSE and by nearly 8 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks sank 35 points to 412.
