Stocks Sunk, AIG Struggles, Credit Turmoil

Stocks sunk across the board today on ultra low volume due to continued turmoil in the credit markets and rising oil. The DJIA dropped -241.81 to 11386.25, the Nasdaq was hit hard losing -49.12 to 2365.59 and the broad based S&P 500 gave back -25.36 to 1266.84.

American International Group
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led the DJIA lower as the player in CDS’s dropped 5.49% or $1.09 to $18.78/share due to Credit Suisse forecasting losses.

Freddie Mac
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bucked the financial down trend today, climbing 18.15% or $0.51 to $3.32/share after a successful sale of $2 billion of Short Term Notes.

Knight Transportation
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fell as trucking stocks were downgraded by Wachovia Bank on falling demand. The shares lost 2.71% or $0.49 to $17.59/share.

LDK Solar
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– The Chinese Silicon Wafer maker climbed 9.78% or $4.48 to $50.30/share on a doubling of deliveries forecast in 2009.Gold lost $7.50 falling to $826.00/oz, oil climbed $0.58 to $115.17/barrel and the fear gauge VIX soared 11.54% to 20.98.

Market Snapshot

Dow

-241.81 11386.25

NASDAQ

-49.12 2365.59

S&P 500

-25.36 1266.84

Economic
News

Core PPI (Jul): Consensus 0.2%, Prior 0.2%

PPI (Jul): Consensus 0.6%, Prior 1.8%

Building Permits (Jul): Consensus 959K, Prior 1138K

Housing Starts (Jul): Consensus 960K, Prior 1084K

Crude Inventories (08/16): Consensus NA, Prior -316K

Initial Claims (08/16): Consensus 438K, Prior 450K

Leading Indicators (Jul): Consensus -0.3%, Prior -0.1%

Philadelphia Fed (Aug): Consensus -13.4, Prior -16.3

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