Dow Drops Below 7000 Over Economic Gloom
For the first time in over eleven years, the Dow dropped below 7000 when it collapsed 300 points to close at 6763. The global markets plunged overnight as fears of a deep and protracted recession continued to plague investors while American International Group reported a massive $61.7 billion quarterly loss. Nasdaq plummeted 55 points to 1323.
On the upside
The Food and Drug Administration approved Pluristem Therapeutics' (Nasdaq: PSTI) application to begin human trials of its placenta-derived stem cell product to treat patients who face amputation.
Aegis offered to acquire ICT Group (Nasdaq: ICTG) in a deal valued at approximately $128 million.
On the downside
Crosstex Energy Inc. (Nasdaq: XTXI) swung to a fourth quarter loss.
TXCO Resources (Nasdaq: TXCO) is negotiating a waiver for violating a loan covenant.
Shares of Wells Fargo (NYSE: WFC), JP Morgan (NYSE: JPM) and Morgan Stanley (NYSE: MS) all fell over bank nationalization fears.
Falling oil prices weighed down shares of Exxon Mobil (NYSE: XOM).
In the broad market, declining issues overwhelmed advancers by a margin of more than 11 to 1 on the NYSE and by more than 7 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 21 points to 368.
