The markets opened lower as investors worried about a strong hurricane approaching the Texas coast and the ongoing turmoil in the financial services sector. The Dow lost more than 100 points to 11,162 while Nasdaq gave up 11 points to 2217.
On the upside
Covidien (NYSE: COV) raised its sales outlook for 2009. The medical device maker and diversified health care company was spun off from Tyco International (NYSE: TYC) last year.
Canadian sportswear maker Lululemon Athletica (Nasdaq: LULU) reported higher profits and same-store sales while reaffirming its outlook for the year.
Allergan (NYSE: AGN) released a study showing that its popular Botox wrinkle-smoother may relieve chronic migraine.
On the downside
Investors worried about a possible 3rd quarter loss for American International Group (NYSE: AIG), the world's largest insurer and a Dow component.
Shares of Lehman Brothers (NYSE: LEH) tumbled as analysts downgraded the troubled investment bank. The selloff affected shares of other companies in the financial services sector, including Merrill Lynch (NYSE: MER) and Morgan Stanley (NYSE: MS).
Investors continued to unload shares of Washington Mutual (NYSE: WM) on worries of a likely default on loans, according to a Reuters report.
In the broad market, declining issues outpaced advancers by a margin
of more than 4 to 1 on the NYSE and by more than 3 to 1 on Nasdaq. The
Russell 2000 which tracks small cap stocks lost 13 points to 703.
