Oil Prices Surge, Markets Drop

Oil prices surged to a new high for the year to send the markets down to a lower close with the Dow tumbling 86 points to 7401.  Nasdaq dropped 8 points to 1483.

On the upside

The House passed a bill to tax 90% of the bonuses that American International Group (NYSE: AIG) and other financial firms receiving government assistance paid to employees making over $250,000 a year.

Lamar Advertising (Nasdaq: LAMR) will raise $250 million through a private placement of senior notes.

Medicis Pharmaceutical (NYSE: MRX) and Teva Pharmarceutical (NYSE: TEVA) settled a patent dispute over Teva's generic version of Medicis' acne medication Solodyn.

On the downside

Advantage Energy Income Fund (NYSE: AAV) reported lower fourth quarter funds from operations.

Developers Diversified Realty (NYSE: DDR) will be replaced on the S&P 500 index by Time Warner (NYSE: TWX) after markets close on March 27.

 

Citigroup (NYSE: C) announced that it may execute a reverse stock split.

In the broad market, advancing issues barely edged out decliners by a slim margin on the NYSE while decliners outpaced advancers by nearly 5 to 4 on Nasdaq.  The Russell 2000 which tracks small cap stocks fell 4 points to 413.