Chinese Stimulus Rally Fizzles

Earnings reports quash session's early gains
By Nick McMaster,  Newser Staff
Posted Nov 10, 2008 3:26 PM CST
Traders work on the floor of the New York Stock Exchange in this undated file photo.   (AP Photo/Richard Drew)
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(Newser) – An early rally in reaction to the Chinese government’s fiscal stimulus package couldn’t hold up and the markets ended today's session with losses. Poor quarterly earnings reports soured investor confidence, the Wall Street Journal reports. The Dow fell 73.27 to close at 8,871. The Nasdaq lost 30.66, settling at 1,617, while the S&P 500 lost 11.78 to close at 919.21.

Asset manager American Capital led financial stocks lower as it plunged 42.3% after posting a $548 million quarterly loss. GM continued its freefall, losing 24.3% as analysts questioned the firm’s ability to fund operations past December. McDonald’s was a bright spot, posting advances after reporting an 8.2% increase in same-store sales for October.