Stocks tumbled during the last hour of trading as investors worried about unemployment and lower corporate earnings. Oil prices sank to a 4-year low while the Dow lost 215 points to close at 8376. Nasdaq plunged 46 points to 1445.
On the upside
A shareholder lawsuit against the merger of JPMorgan Chase (NYSE: JPM) and investment bank Bear Stearns was dismissed. Shares of JPMorgan Chase edged higher bucking an industry sell-off.Shares of Collective Brands (NYSE: PSS) rose after the shoe retailer posted higher revenues and earnings.
On the downside
Shares of Starbucks (Nasdaq: SBUX) edged lower after warning that its quarterly profits would fall short of analysts' expectations.
General Motors (NYSE: GM) expressed a willingness to merge with Chrysler as a requisite to take government bailout funds.
Investors sold off shares of Cirrus Logic (Nasdaq: CRUS) after the electronic components maker lowered its revenue outlook.
Layne Christensen (Nasdaq: LAYN) posted higher 3rd quarter revenues and profits, but the results missed expectations. The company provides drilling and construction services.
In the broad market, declining issues outpaced advancers by a margin of nearly 3 to 1 on the NYSE and by more than 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks fell 14 points to close at 439.