Despite sharply lower oil prices, the markets closed lower as manufacturing activity fell and construction spending dropped more than expected. The Dow lost 27 points to 11,517 while Nasdaq tumbled 18 points to 2349.
On the upside
Freddie Mac (NYSE: FRE) sold $1 billion in five-year debt though an auction and will sell $3 billion in two-year debt tomorrow.
Shares of Puerto Rico based bank Popular (Nasdaq: BPOP) continued to rise after announcing plans to sell $1.17 billion worth of U. S. mortgage assets to Goldman Sachs.
The Air Transport Association reported that airliners improved fuel efficiency while reducing harmful emissions in 2007. Shares of Northwest (NYSE: NWA), Delta (NYSE: DAL) and Continental Airlines (NYSE: CAL) soared.On the downside
Privately held Transcept Pharmaceuticals will acquire biopharmaceutical Novacea (Nasdaq: NOVC) in an all stock deal.
Shares of U. S. Steel (NYSE: X) tumbled after the Institute for Supply Management reported a drop in manufacturing activity in August while the Commerce Department reported a sharper than expected decline in construction spending.
Banc of America analyst William Ho downgraded Gilead Sciences (NYSE: GILD) as growth for the biotechnology company's HIV drugs slow.In the broad market, advancing issues outpaced decliners by a margin of nearly 9 to 8 on the NYSE while declining issues barely edged out advancer on Nasdaq. The Russell 2000 which tracks small cap stocks eased a point to 739.
