Lehman Crushed, Stocks Spiral Down, Enron Shareholders Win
What a day in the financial markets! Lehman Brothers was crushed, falling over 40% as credit concerns increase and takeover talks with KDB cease. A monstrous $7.2 billion award was handed down by Judge Melinda Harmon settling a shareholder suit against the fallen energy trading company Enron. Stocks reacted to this news by staging a steep, spiraling descent. The DJIA fell -280.01 to 11230.73, the Nasdaq plummeted -59.95 to 2209.81, and the broad based S&P 500 dropped -43.28 to 1224.51.
Lehman Brothers
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Cardica Inc
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Pep Boys
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American International
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PowerRating) – The insurer fell 19.29% or $4.39 to $18.34/share due to Lehman Brothers issues causing concern that the company will be hindered in raising capital.
Oil fell another $4.23 to $102.11/barrel, Gold was hit hard dropping $19.50 to $783/oz and the fear index VIX spiked 12.50% to 25.47 as extreme anxiety grips the stock market.
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