Markets Reel After S&P Downgrade
The markets opened sharply lower in response to Standard & Poor's downgrade of the nation's credit rating on Friday after market close. The
Dow collapsed 319 points to 11,124 while Nasdaq sank 97 points to
2433.
On the upside
Broadsoft (Nasdaq: BSFT) reversed year ago losses to post a better than expected profit for the second quarter as revenue surged prompting the company to lift its full year outlook.On the downside
American International Group (NYSE: AIG) announced plans to sue Bank of America (NYSE: BAC) for more than $10 billion in losses stemming from mortgage debt fraud.
The National Highway Traffic Safety Administration launched a preliminary investigation into Ford's (NYSE: F) 2011-2012 manual transmission Mustangs for possible problems with shifting.
Citadel initiated coverage of Dendreon (Nasdaq: DNDN) with a Neutral rating.
The Bedford Report issued a research paper saying that the cost of increased production at SandRidge Energy (NYSE: SD) may negatively impact earnings as oil prices have tumbled.
Quicksilver (NYSE: KWK) reported higher second quarter earnings and revenue that topped estimates but the stock price fell.
In the broad market, declining issues outpaced advancers by a margin of more than 11 to 1 on the NYSE and by nearly 7 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 18 points to 696.
