Stocks Skid for Fourth Straight Day
September crude oil futures fell 85 cents to settle at $88.91 a barrel. December gold futures fell by $16.60 at $1,590.70 an ounce.
The benchmark 10-year Treasury was rising 14/32, diluting the yield to 1.482%. The greenback was gaining 0.43%, according to the dollar index.
In corporate news, General Motors (GM) shares fell 2.6% after the automaker posted profit of 90 cents a share, which topped the Wall Street target of 75 cents, though its net income took a hit from losses in Europe.
Abercrombie & Fitch (ANF) shares plunged 14.6% after the apparel retailer slashed its second-quarter outlook amid tepid demand for its higher end items.Shares of Gap (GPS) popped by 12.8% after the clothing retailer announced Thursday that July same-store sales increased by a better-than-expected 10% and that it expects a year-over-year rise in second-quarter earnings. First Solar (FSLR) shares surged 21.2% after the solar panel company exceeded second-quarter estimates and hiked its full-year revenue outlook the previous day. Bristol-Myers Squibb (BMY) suspended a mid-stage study of its experimental hepatitis C drug BMS-094 due to a serious safety issue said to heart failure, according to ISI Group analyst Mark Schoenebaum. BMS-094 was the sole reason behind Bristol-Myers' $2.5 billion acquisition of Inhibitex last January. Shares tumbled 8.6%. American International Group (AIG) is looking to buy back a large amount of its shares from the government in a push that could make the U.S. a minority shareholder by the fall and allow the insurer to fully repay its bailout sooner than expected, the Journal reported, citing people familiar with the company's thinking. Shares rose 0.84% in after hours after the company reported second-quarter operatings earnings per share of $1.06, which beat 60 cents consensus of analysts polled by Bloomberg. The source of Wednesday's trading problem in about 150 stocks was traced to Knight Capital Group (KCG), which said its market-making unit had suffered a software glitch that was interfering with its system's interaction with the New York Stock Exchange. Knight Capital said in a press statement released Thursday that it has traded out of its entire erroneous trade position, which has resulted in a realized pretax loss of about $440 million. Shares collapsed 63% on Thursday and were dipping another 19% after-hours.
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