Markets Plummet As Government Shuns Bad Mortgages
Disappointing earnings news along with the Treasury Department's announcement that purchasing bad mortgages from banks will not be part of the government's $700 billion bailout package sent the markets into a tailspin with the Dow skidding 411 points to 8283. Nasdaq plummeted 82 points to 1499.
On the upside
Frontier Financial (Nasdaq: FTBK) applied to participate in the government's Capital Purchase Program.Charlotte Russe (Nasdaq: CHIC) shareholders KarpReilly Capital Partners and H.I.G. Capital offered approximately $198.6 million to acquire the women's apparel retailer.
Hutchison Telecommunications (Nasdaq: HTX) reported that it increased its user base to 11.2 million subscribers in the third quarter.
On the downside
United Airlines (Nasdaq: UAUA) reported that its revenue passenger miles tumbled 9.7% in October while its available seat miles plunged 9.9%.
Teck Cominco (NYSE: TCK) must sell its gold assets in order to repay a bridge loan it used to finance the mining company's acquisition of Fording Canadian Coal Trust.
Although KHD Humboldt Wedag International (NYSE: KHD) reported higher third quarter income, the company warned that the challenging global economic situation has forced the company to focus on sustaining equity rather than growth.
In the broad market, declining issues overwhelmed advancers by a margin 10 to 1 on the NYSE and by 6 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks slumped 29 points to 453.
