Volatility Surges, Financials Fall, Sun Sold
Cold rain and driving wind pummeled the New York Stock Exchange today as the bastion of American capitalism sold off after a six week rally. The Volatility Index or VIX surged over 15% as investors raced to purchase insurance against further declines in the form of derivatives. The financial sector led the decline due to deep internal issues overshadowing the positive earning reports. Despite the dark, pessimism of the day, positive news of Oracle purchasing Sun Microsystems for $7.4 billion shed a little optimism on technology shares. The DJIA tumbled -289.60 to 7841.89, the Nasdaq fell -64.86 to 1608.21, and the S&P 500 plummeted -37.21 to 832.41.
Bank of America
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PowerRating) – Led the financials and DJIA lower due to being forced to increase reserves to cover losses despite positive earnings. Shares fell 22.11% or $2.45 to $8.15/share on the news.
Pepsi Bottling
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Sun Microsystems
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Quicksilver Resources
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PowerRating) – Dropped 22.45% or $1.96 to $6.77/share after its lenders increased the interest rate on over a billion dollars worth of loans.
Gold climbed $19.60 to $887.50, Oil $4.45 to $45.65 and the fear index VIX surged 15.44% to 39.18.
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