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December 2, 2008 8:34:05 PM CST



Stocks Reverse; Dow Down 280

Posted Sep 9, 08 3:16 PM CDT in Business 

(Newser) – After a strong rally yesterday following news of the Fannie/Freddie bailout, stocks gave most of the gain back today as the failure of talks between Lehman Brothers and Korea’s state bank sent shares in the investment giant down 44.1%, MarketWatch reports. The Dow fell 280.01 to close at 11,230.73. The Nasdaq lost 59.95 to 2,209.81, while the S&P 500 closed down 43.28 at 1,224.51.

Even the threat of Hurricane Ike couldn’t stop oil futures from plummeting $3.08, as traders remained certain that flagging global demand will keep prices low. Financials also charted lower, as AIG and American Express fell 19.5% and 5.6%, respectively. Housing continues to look weak, as the National Association of Realtors reported that pending home sales fell 3.2% in July.

Sources MarketWatch, Wall Street Journal

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Banc of America's Scott Wetzel monitors trading on the floor of the New York Stock Exchange, Tuesday, Sept. 9, 2008 in New York.   (AP Photo/Henny Ray Abrams)
Michael Volpe of Lehman Brothers MarketMakers looks at an overhead monitor on the floor of the New York Stock Exchange, Tuesday, Sept. 9, 2008 in New York.   (AP Photo/Henny Ray Abrams)
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It was a relief rally yesterday on a measure that the government had to take. Without it, things would have been a lot worse, but it doesn't save the financial sector from the inevitable, which is higher credit losses. - Noman Ali, MFC Global Investment

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