Possible Auto Industry Bankruptcies Sink Markets

Possible bankruptcy filings by General Motors and Chrysler sent the markets into a tailspin with the Dow plummeting 254 points to close at 7522.  Nasdaq plunged 43 points to 1502.

On the upside

Although Providence Service (Nasdaq: PRSC) swung to a loss for the fourth quarter, revenue surged.

Perma-Fix Environmental Services (Nasdaq: PESI) reversed year ago losses to post a fourth quarter profit as revenue climbed.

On the downside

Converted Organics (Nasdaq: COIN) widened full year losses.

Shares of auto parts suppliers TRW Automotive Holdings (NYSE: TRW) and American Axle & Manufacturing Holdings (NYSE: AXL) tumbled over fears that General Motors (NYSE: GM) will file for bankruptcy.

Charles Schwab (Nasdaq: SCHW) chief executive Walter Bettinger II received a lower compensation package in 2008 than 2007 but his base salary increased.

Treasury Secretary Tim Geithner said that some banks will need additional government assistance sending shares of Bank of America (NYSE: BAC), Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC) tumbling.

In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 1 on the NYSE and by more than 3 to 1 on Nasdaq.  The Russell 2000 which tracks small cap stocks skidded 13 points to 416.