From Treasury Secretary Timothy Geithner's statement that more bank bailouts may be needed in the future to Rick Wagoner's unceremonious departure from the helm of General Motors (GM), today's news seemed too heavy for the markets to bear. Financial stocks and GM led the Dow Jones Industrial Average down 254 points, or 3.3 percent, to close at 7,522.
Among the 30 Dow components, only IBM (IBM) and Johnson & Johnson (JNJ) rose, though just barely. In addition to the banks and automakers, aluminum giant Alcoa (AA) also saw its shares plunge.
Among the stocks making news today:
Amazon ( AMZN) was featured as the Barron's cover story in this weekend's edition as finding growth avenues of its own via Kindle and other channels while also cutting costs. This was one of the only gainers today. Shares were up 0.8% at $71.09 shortly before the close.
American International Group (AIG) has reportedly cut or delayed payments to some of its real estate ventures, which could leave shopping centers and apartment complexes short of cash needed to pay creditors. Shares were down 2.5% at $0.99 late in the day. It is lucky that shares weren't off further.
DryShips (DRYS) looked like a capsized tanker today. The company's annual report disclosed a "going concern" note in one of its units. This casts even more doubt on top of more questions. Shares were off more than 16% at $4.90 right before the close.
Intel (INTC) did release its new chipset offering for processors today, but the weak market kept it from winning. Shares were down just over 5% at $14.60 late in the day.
General Motors (GM) lost Rick Wagoner as CEO, at the request of the White House as the company was given another 60-day period to come up with a better sustained business plan. While the administration hinted that Chrysler was much worse, there were no assurances that GM wouldn't go bankrupt. Shares were down 27% at $2.62 right before the close.
Sun Microsystems (JAVA) traded off as there is still no firm deal on the table that has been announced from IBM to buy the troubled high-end server maker. Shares were off by 8% at $7.20 right before the close.
UBS (UBS) was down all day on expectations that it will reveal huge losses and have layoffs on Tuesday. This helped to add pressure on US banks and brokerage stocks today. Shares were down just over 10% at $8.76 right before the close today.
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