Falling Gas Prices Lift Markets
The markets staged a midday rebound with the Dow gaining 62 points to 8059 as gasoline prices tumbled. Nasdaq rose 12 points to 1398.
On the upside
Student lender Sallie Mae (NYSE: SLM) will hire 1,100 workers for a new credit operations center in Delaware.
US Airways Group (NYSE: LCC) will reinstate the preferred bonus miles and preferred minimum miles for some of the airliners frequent fliers.
On the downside
A Food and Drug Administration panel voted against Targanta Therapeutics' (Nasdaq: TARG) injectable antibiotic oritavancin.
JP Morgan analyst Jonathan B. Chappell downgraded Eagle Bulk Shipping (Nasdaq: EGLE) saying that low ship leasing rates may lead to the breaching of loan agreements.
Analysts lowered their earnings estimates for Flextronics International (Nasdaq: FLEX) and cut their price target citing the weak economy.
JP Morgan Securities downgraded VeriFone Holdings (NYSE: PAY) after the company lowered its fourth quarter forecast.
In the broad market, declining issues overwhelmed advancers by a margin of 7 to 2 on the NYSE and by more than 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks lost 6 points to 407.
