The markets extended its losses during the midday after Treasury Secretary Henry Paulson announced that the federal government will not purchase bad mortgages from banks as part of the $700 billion bailout package. Dow slumped 278 points to 8416 while Nasdaq plunged 40 points to 1541.
On the upside
Lear chief executive Robert Rossiter (NYSE: LEA) 225,000 shares of the auto parts supplier saying that the stock was undervalued.Lawn and garden care products company Scotts Miracle-Gro (NYSE: SMG) announced that it is in discussions to supply retailers with fertilizer products after Spectrum Brands (NYSE: SPC) exits the fertilizer business in January.
Although PHH (Nasdaq: PHH) widened third quarter loss due to a goodwill charge, revenue rose.
On the downside
StemCells (Nasdaq: STEM) will raise approximately $20 million through the sale of 13.8 million shares of common stock to institutional investors.
Solar cell maker JA Solar Holdings (Nasdaq: JASO) blamed its third quarter loss to losses related to the bankruptcy filing of Lehman Brothers.
ProLogis (NYSE: PLD) cut its dividend as part of its plan to conserve capital and announced the departure of chief executive and chairman Jeffrey Schwartz.
In the broad market, declining issues outpaced advancers by a margin nearly 6 to 1 on the NYSE and by nearly 4 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plummeted 12 points to 471.
