The markets opened lower as oil prices surged and unemployment claims unexpectedly increased. The Dow tumbled more than 200 points to 12,385 while Nasdaq lost 35 points to 2514.
On the upside
The Federal Reserve approved the $4 billion stock purchase of Countrywide Financial (NYSE: CFC) by Bank of America (NYSE: BAC).Inspire Pharmaceuticals (Nasdaq: ISPH) posted positive late stage trial results for its drug candidate treating cystic fibrosis.
Tumbleweed Communication (Nasdaq: TMWD) announced a $138 million deal to be acquired by Sopra Group, a French information technology company. Shares of the e-mail and messaging security software provider surged toward the $2.70 per share target price.
On the downside
The SEC opened an investigation into American International Group (NYSE: AIG) for allegedly overinflating the value of subprime-related investment contracts known as credit default swaps.Oil and gas producer GeoResources (Nasdaq: GEOI) placed a stock offering well below its current price.
Shares of Focus Media Holding (Nasdaq: FMCN) fell after the China-based advertising network lowered its guidance for the year due to advertisers' response to the recent earthquake and hesitation to spend.
In the broad market, declining issues outpaced advancers by a
margin of more than 3 to 1 the NYSE and by nearly 3 to 1 on Nasdaq. The
Russell 2000 which tracks small cap stocks dropped 9 points to 754.
