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Lehman, GM Drive Stocks Down

Liquidity rumors, poor sales sour investor sentiment

By Nick McMaster, Newser Staff

Posted Jun 3, 2008 3:41 PM CDT

(Newser) – The markets enjoyed modest gains before dropping sharply this afternoon as rumors swirled that Lehman Brothers may face a liquidity problem and automakers reported weak May sales, MarketWatch reports. The Dow closed down 100.97 at 12,402.85, the Nasdaq down 11.05 at 2,480.48, and the S&P 500 down 8.02 at 1,377.65.

GM’s share price illustrated the day's trends: Boosted by a morning report of the planned cost-cutting measures, it fell after a weak sales report. Lehman led financials down off speculation that the firm may have to raise $4 billion in fresh capital. “Right now people are selling first and asking questions later when it comes not only to Lehman, but to the financials in general,'' said one fund manager.

General Motors Chairman and CEO Rick Wagoner addresses the annual shareholders meeting Tuesday, June 3, 2008 in Wilmington, Del. (AP Photo/Bradley C Bower)

Traders work on the floor of the New York Stock Exchange in this undated file photo. (AP Photo/Richard Drew)

Businessmen walk in to the Roppongi Hills complex, an office/apartment skyscraper, beside the signboard of Lehman Brothers in Tokyo in this Thursday, April 3, 2008 photo. (AP Photo/Katsumi Kasahara)

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Lehman, GM Drive Stocks Down

Liquidity rumors, poor sales sour investor sentiment

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Lehman, GM Drive Stocks Down

Liquidity rumors, poor sales sour investor sentiment

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OTHER STORIES ON OUR RADAR

NASDAQ • Dow Jones • General Motors • Lehman Brothers • S&P 500 • financial stocks

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Stocks Plummet; Dow Falls 281

Dow blows by Tuesday low

Stocks Rally, Clearing 9,000

Bernanke urges more fiscal stimulus

Dow Falls 678 to Sub-9,000 Close

Dow falls below 9,000 for first time since 2003

Investors Wary; Stocks Mixed

Lehman's floundering continues to stir fear in financial sector

Late Reversal Leads to Gains

Off big early on Lehman, worries, Dow finishes session up 164.79

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?