All eyes turned to the White House to allocate TARP funds after the Senate rejected a $14 billion package to keep automakers afloat. Meanwhile, wholesale prices fell for the 4th consecutive month raising deflationary concerns. The Dow lost more than 120 points to 8444 while Nasdaq fell a more modest 8 points to 1500.
On the upside
Investors were optimistic that troubled mall owner General Growth Properties (NYSE: GGP) may be able to negotiate an extension on $900 million in debt.Exelixis (Nasdaq: EXEL) partnered with Bristol-Myers Squibb (NYSE: BMY) which will make an upfront cash payment of $195 million to develop two drugs to slow cancer cells.
Shares of Diana Shipping (NYSE: DSX) rose after the shipping company signed a lucrative contract with Louis Dreyfus Commodities S.A., Geneva.
On the downside
Waters Corporation (NYSE: WAT) lowered its 2009 outlook. Analysts promptly downgraded the medical equipment maker.
An analyst lowered his opinion of the engineering and construction sector. Shares of Chicago Bridge and Iron (NYSE: CBI) opened sharply lower.
In the broad market, declining issues outpaced advancers by a margin of 3 to 1 on the NYSE and by nearly 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks dropped 2 points to 449.
