Updated from 2:45 p.m. with new stock prices
The market reacted negatively after disappointing earnings reports and downgrades, looming concerns for the financial and automotive sector, and oil spiking up $3.78 to $138.33 a barrel. The major indices were all down about 3.0% each.
The Russell 2000 and the S&P 600 traded in sync with the major indices. The Russell 2000 traded at 698.64, down about 2.5%, and the S&P 600 Small Cap at 370.50, down about 2.2%.
fell sharply, by 16.3% to $15.16, since Patrick Archambault, an analyst from Goldman Sachs, downgraded the stock to sell from neutral. Patrick fears the Southfield, Mich., auto supplier will continue to struggle, with
deteriorating in the automotive industry.
fell sharply, by 11.2% to $18.22, after announcing its new strategy initiative. The Akron, Ohio-based firm stated that it increased its cost-cut target to more than $2 billion by 2009 from its previous target of $1.8 billion to $2.0 billion. Goodyear also said it plans on investing $1.3 billion to expand in China, Russia and Brazil.
( PHTN) rose 31.1% to $15.15 after the board agreed to be bought out by
, an Israeli firm, for $15.60 per share, or $290 million.
In the San Jose, Calif., company's press release regarding the buyout, President and CEO Jeffrey A. Hawthorne had this to say: "By teaming up with Orbotech, which is committed to investing in innovative technologies, we will be able to grow the combined business and improve its competitive positioning as we face a maturing industry."
Research In Motion
( RIMM) fell 13.3% to $123.46 after reporting earnings just shy of analysts' expectations as well as a lower-than-expected outlook.
For the first quarter, the Canadian wireless company earned $482.5 million, or 84 cents per share, compared with $223.2 million, or 39 cents per share, the previous year. Revenue rose to $2.24 billion from $1.08 billion a year earlier. Analysts expected earnings to be 85 cents per share on revenue of $2.27 billion. For the second quarter, RIM expects to earn 84 cents to 89 cents per share on revenue of $2.55 billion to $2.65 billion; analysts estimated earnings of 90 cents a share on revenue of $2.44 billion.
This article was written by a staff member of TheStreet.com.