Stock Market Wrapup Aug. 28th
Stocks opened the session lower after disappointing economic data caused investors to be wary of current economic conditions. Later in the day, equities accelerated their losses after credit fears once again took control of the market. All the major stock indices closed near their lows for the day. Over in the energy patch, oil prices also ended the day slightly lower.
On the economic docket today, the New York Conference board said that consumer confidence this month plunged the most since Hurricane Katrina nearly two years ago. The index fell to 105, from a revised 111.9 in July, the conference board said. Even though the readings were low, economists were looking for a larger drop to 104. Elsewhere, home prices fell the most in 20 years according to the Case-Shiller report, which recorded a -3.2% drop in home sales nationally in the second quarter.
In company-related news, consumer and commercial finance company CIT Group (NYSE: CIT - News) announced that it would close its mortgage lending operations and take a $35 million pretax charge in its third quarter for severance and exit costs. Last month, the company reported a loss due to a $495.3 million after-tax charge to reduce the value of some home loan receivables. The company also announced that it is cutting 550 jobs.
Shares of financial service company State Street (NYSE: STT - News) plunged after it reported in filings that it has exposure to about $29 billion worth of commercial paper conduits. Conduits are retail and commercial loans that are bundled into packages and backed by short-term debt from the commercial paper market. Also plaguing the company are reports that of one of its bond funds has lost more than a third of its value in recent weeks.
Internet service provider (ISP) EarthLink (Nasdaq: ELNK - News) shares rose after the company announced that it will cut 900 jobs or half of its work force and close four offices in an attempt to reduce operating costs. It also announced that it will repurchase $200 million of its own stock. The company cut its sales range for the year to $1.19-$1.21 billion, down from a previous range of $1.23-$1.24 billion. Full-year net loss is expected to come in between -$79 to -109 million.
On the deal front, pharmacy benefit manager Medco Health Solutions (NYSE: MHS - News) agreed to buy blood-glucose test maker Polymedica (Nasdaq: PLMD - News) in an all-cash deal valued at $1.5 billion, or $53 a share, which represents a 17% premium to where the shares closed on Monday. Medco says the deal will help it boost sales of its diabetes care products.
By the BullMarket.com Staff
On the economic docket today, the New York Conference board said that consumer confidence this month plunged the most since Hurricane Katrina nearly two years ago. The index fell to 105, from a revised 111.9 in July, the conference board said. Even though the readings were low, economists were looking for a larger drop to 104. Elsewhere, home prices fell the most in 20 years according to the Case-Shiller report, which recorded a -3.2% drop in home sales nationally in the second quarter.
In company-related news, consumer and commercial finance company CIT Group (NYSE: CIT - News) announced that it would close its mortgage lending operations and take a $35 million pretax charge in its third quarter for severance and exit costs. Last month, the company reported a loss due to a $495.3 million after-tax charge to reduce the value of some home loan receivables. The company also announced that it is cutting 550 jobs.
Shares of financial service company State Street (NYSE: STT - News) plunged after it reported in filings that it has exposure to about $29 billion worth of commercial paper conduits. Conduits are retail and commercial loans that are bundled into packages and backed by short-term debt from the commercial paper market. Also plaguing the company are reports that of one of its bond funds has lost more than a third of its value in recent weeks.
Internet service provider (ISP) EarthLink (Nasdaq: ELNK - News) shares rose after the company announced that it will cut 900 jobs or half of its work force and close four offices in an attempt to reduce operating costs. It also announced that it will repurchase $200 million of its own stock. The company cut its sales range for the year to $1.19-$1.21 billion, down from a previous range of $1.23-$1.24 billion. Full-year net loss is expected to come in between -$79 to -109 million.
On the deal front, pharmacy benefit manager Medco Health Solutions (NYSE: MHS - News) agreed to buy blood-glucose test maker Polymedica (Nasdaq: PLMD - News) in an all-cash deal valued at $1.5 billion, or $53 a share, which represents a 17% premium to where the shares closed on Monday. Medco says the deal will help it boost sales of its diabetes care products.
By the BullMarket.com Staff
posted by Stock Administrator @ 3:29 AM
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