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Bad News Spurs Big Sell-Off

Poor results at AIG, nervous retailers, rising oil all contribute to decline

By Nick McMaster, Newser Staff

Posted Aug 7, 2008 3:25 PM CDT

(Newser) – The markets suffered big losses today as investors were confronted by bad news from retail and financial giants, as well as a 6-year-high in weekly unemployment, the Wall Street Journal reports. The Dow fell 224.64to 11,431.43. The Nasdaq lost 22.64 to finish at 2,355.73, and the S&P 500 fell 23.12 to 1,266.07.

Insurer AIG fell 17% after dashing analysts’ expectations with a $5.36 billion quarterly loss, its third in a row. Wal-Mart dropped 5%, even with an increase in revenue, as it forecast slowed sales for August. Investors are beginning to worry that the credit crisis is nullifying the Fed’s action, as borrowing costs remain high despite relatively low rates.

Martin J. Sullivan, CEO of AIG, speaks to reporters during a new conference in New York in this file photo. (AP Photo)

Traders work at the New York Stock Exchange in this undated file photo. (AP Photo/Mark Lennihan)

Kelli and Mark Beaver of Duncannon, Pa., load thier purchases into the back of their red mini van at WAL-MART Supercenter in Mechanicsburg, Pa., Thursday, June 12, 2008. (AP Photo/Carolyn Kaster)

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Bad News Spurs Big Sell-Off

Poor results at AIG, nervous retailers, rising oil all contribute to decline

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Rally Loses Steam; Dow Off 32

Freddie Mac sees shares rise 122% on earnings

Late Rally Lands Dow Up 410

Fed may have plan to quarantine bad debt; banks see gains

Fluctuating Markets Close Up

Dow returns to 11K-plus territory

Bailout Rally Tails Off Late

Persistent worries about the non-financial economy temper gains

Modest Gains From Mixed Day

Fannie, Freddie continue to bleed out; H-P brightens tech sector

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Bad News Spurs Big Sell-Off

Poor results at AIG, nervous retailers, rising oil all contribute to decline

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OTHER STORIES ON OUR RADAR

NASDAQ • Federal Reserve • Dow Jones • Freddie Mac • Fannie Mae • AIG • S&P 500 • Walmart • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Rally Loses Steam; Dow Off 32

Freddie Mac sees shares rise 122% on earnings

Late Rally Lands Dow Up 410

Fed may have plan to quarantine bad debt; banks see gains

Fluctuating Markets Close Up

Dow returns to 11K-plus territory

Bailout Rally Tails Off Late

Persistent worries about the non-financial economy temper gains

Modest Gains From Mixed Day

Fannie, Freddie continue to bleed out; H-P brightens tech sector

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?