Hot on Facebook

Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

Stocks Reverse; Dow Down 280

Lehman Bros., housing weigh on investor sentiment

By Nick McMaster, Newser Staff

Posted Sep 9, 2008 3:16 PM CDT

(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.

[Images (2)]

[Quotes (1)]

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)

« Prev« Prev | Next »Next » Slideshow

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

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Investors Wary; Stocks Mixed

Lehman's floundering continues to stir fear in financial sector

(NEWSER) - The markets ended mixed today, as Lehman Brothers foundered and financial firms continued to take hits, MarketWatch reports. Weekly gains were slim, despite Sunday’s Fannie and Freddie bailout, which was supposed to calm investor fears and boost the markets. The Dow closed down 11.72 at 11,421.99. The Nasdaq rose 3.05 to 2,261.27, while the S&P 500 gained 2.64, closing at 1,251.69. More»

Late Reversal Leads to Gains

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

(NEWSER) - The markets saw gains late in the day today despite large losses in the financial sector, MarketWatch reports. Lehman Brothers fell another 41.9% as traders deemed its survival plan ineffective. But falling oil boosted industrial and transport shares, and the Dow closed up 164.79 at 11,43371. The Nasdaq gained 29.52, to 2,258.22, and the S&P 500 rose 17.01 to 1,249.05. More»

Stocks Climb Nearly 200 Points

Poor housing, durable goods goods data don't deter market's optimism

(NEWSER) - Stocks rallied this afternoon on news that lawmakers had reached a consensus on the Wall Street bailout plan, MarketWatch reports. Optimism proved infectious as GE rose 6.26% despite cutting an earnings estimate earlier today. The Dow climbed 196.89 points to 11,022.06. The Nasdaq gained 30.89 points, settling at 2,186.57, while the S&P 500 rose 23.31 points to close at 1,209.18. More»

Bailout, Oil Send Dow Down 372

Traders nervous about long-term effects

(NEWSER) - Stocks plummeted today as uncertainty over the cost and long-term impact of the Wall Street bailout plan spread and oil surged, MarketWatch reports. Treasuries and the dollar fell as traders worried the bailout’s cost could affect the government’s status as a borrower. The Dow closed down 372.75, at 11,015.69. The Nasdaq lost 94.92, closing at 2,178.98, and the S&P 500 lost 47.99, closing at 1,207.09. More»

Dow Ends Ugly Day Down 504

Lehman bankruptcy swamps week's first trading day

(NEWSER) - After a midday lull, stocks plummeted again late today as traders adjusted to the failure of Lehman Brothers and the acquisition of Merrill Lynch by Bank of America, Bloomberg reports. Lehman’s stock alone was down 94.9%. The Dow fell 504.48 to 10,917.51. The S&P 500 lost 59.01, its biggest drop since the 2001 terror attacks, closing at 1,192.69; the Nasdaq fell 81.36 to 2,179.91. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Stocks Reverse; Dow Down 280