Fears Of Protracted Economic Recovery Sends Markets Tumbling
Greater than expected initial applications for unemployment benefits stoked fears of a lengthy economic recovery period sending the Dow plunging 129 points to 8292. Nasdaq slumped 32 points to 1695.
Although first quarter earnings and revenue rose for GameStop (NYSE: GME), the video game retailer forecast second quarter results below estimates and lowered its same store sales guidance for the year.
Dahlman Rose analyst Daniel Scott downgraded Patriot Coal (NYSE: PCX) citing lower demand and oversupply.
On the upside
The International Trade Commission sided with Tessera Technologies (Nasdaq: TSRA) in a patent dispute with Motorola (NYSE: MOT), Qualcomm (Nasdaq: QCOM), Freescale Semiconductor and Spansion.
A tentative deal has been reached between the United Auto Workers union and General Motors (NYSE: GM) to reduce labor costs and change funding for retiree health benefits.
Shares of OpenTable (Nasdaq: OPEN) surged in its market debut.
On the downside
Although first quarter earnings and revenue rose for GameStop (NYSE: GME), the video game retailer forecast second quarter results below estimates and lowered its same store sales guidance for the year.
Dahlman Rose analyst Daniel Scott downgraded Patriot Coal (NYSE: PCX) citing lower demand and oversupply.
In the broad market, declining issues outpaced advancers by a margin of more than 5 to 2 on the NYSE and by nearly the same on Nasdaq. The Russell 2000 which tracks small cap stocks fell 8 points to 481.
