This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Forget Yesterday's Good Times

Updated from 12:06 a.m. EDT

Stocks on Wall Street were falling Tuesday, giving back the previous day's big gains as anxious traders dealt a substantial blow to Lehman Brothers (LEH) shares.

The Dow Jones Industrial Average was recently down 59 points to 11,452, and the S&P 500 dropped 14 points to 1,253. The Nasdaq dropped 14 points to 2,256.

After Monday's close, a regulatory filing showed Michael Dell, CEO of PC maker Dell (DELL - Get Report), bought $100 million in the company's stock last week.

Ahead of the new day's trading, Dow Jones Newswires reported that South Korea Development Bank, which had been rumored ready to buy a stake in Lehman, has ended talks with the struggling brokerage. However, Bloomberg later reported that Korea's Financial Services Commission denied the report. Subsequently, Bloomberg reported that the talks between Lehman and KDB did in fact end.

Whatever really happened, Lehman is trading down some 30%.

"The financials are weak," said Ted Weisberg, floor trader at Seaport Securities. "I don't know if there's any specific news; I only know what I read in the paper." He said that much of the headline news concerning Lehman is conjecture and talk.

"There continues to be no tolerance for negative rhetoric, no matter what the source," said Weisberg. "Nothing seems to work, and whatever happens seems to have a 24-hour life cycle at best, and then we're back to the underlying trend, which seems to be neutral at best."

Market analysts' revisions on some stocks' ratings were reflecting the negative sentiment. Stifel Nicolaus downgraded banking companies TCF Financial (TCB) and BB&T (BBT) to hold from buy and to sell from hold, respectively. Wachovia (WB) also took a hit from Merrill Lynch, which cut the bank to underperform from neutral.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
BHP $46.44 -0.81%
MCD $94.88 -0.78%
SSL $38.43 -2.73%
AAPL $124.75 -1.13%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs