JP Morgan Cuts Insurer, Atticus Closes Fund, Stocks Sink
Stocks spiraled downward for the second straight day this week. The market overlooked positive data from productivity and inventory deciding to focus on negative news. JP Morgan cut the rating of the world’s largest bond insurer MBIA to “underweight” sending bank shares sharply lower. Hedge fund giant, Atticus, closed the $3.5 billion dollar global fund after steep losses last year continued into the second half of 2009; further adding to the days pessimism. The DJIA lost -96.50 to 9241.45, the Nasdaq gave back -22.51 to 1969.73 and the broad based S&P 500 dropped -12.75 to 994.35 suffering the steepest decline in a month.
MBIA
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PowerRating) – Led the S&P 500 lower after JP Morgan downgraded the bond insurer to “underweight” stating there is little value there. Shares dropped 12.32% or 76 cents to $5.41.
Yum! Brands
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PowerRating) – Downgraded by UBS to neutral sent shares falling 3.78% or $1.38 to $35.15.
Armstrong World Industries
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PowerRating) – Soared 11.38% or $2.92 to $28.57 after private equity honcho, David Bonderman, stated he would buy a $180 million dollar stake in the company.
EchoStar
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PowerRating) – Citigroup upgraded the firm to buy triggering shares to climb 18.97% of $3.03 to $19.00.
The fear index VIX spiked 4% higher to 25.99, gold added 70 cents to 947.60 and oil dropped $1.15 to $69.36.
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