Selling intensified as investors worried about eroding corporate profits and a gloomy economic outlook well into 2009. The
Dow lost 275 points to 8593 while Nasdaq fell nearly 50 points to 1568. Meanwhile, oil prices fell to $60 a barrel.
On the upside
American Science & Engineering (Nasdaq: ASEI) posted higher revenues and earnings and announced a dividend. The company makes X-ray inspection systems.Hospitality Properties Trust (NYSE: HPT) reported lower 3rd quarter revenues due to lower rental income, but the results beat expectations.
On the downside
Shares of Genworth Financial (NYSE: GNW) lost half its value after its senior debt rating was downgraded by Moody's Investors Service.
Shares of General Growth Properties (NYSE: GGP) collapsed on worries that the 2nd largest U.S. mall owner may default on upcoming debt payments.
General Motors (NYSE: GM) announced more job cuts while some analysts consider the stock worthless due to a likely bailout.
Luxury homebuilder Toll Brothers (NYSE: TOL) reported sharply lower revenues. Investors remained gloomy about the company's prospects despite a respectable balance sheet.
In the broad market, declining issues outpaced advancers by a margin of more than 5 to 1 on the NYSE and by nearly 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks dropped 9 points to 483.
