Knight shares plunged $3.39, or 33 percent, to $6.94 on Wednesday and in premarket trading Monday, they gave up another 32 percent, falling to $2.76.Going in the opposite direction is Best Buy Co., which jumped 24 percent in premarket trading after Richard Schulze offered to buy the company. Schulze, 71, founded the company in 1966 and is its largest shareholder by far with a 20 percent stake. Schulze hinted two months ago that he might dump his stake in the company and in early June, resigned as chairman.
NEW YORK (AP) â¿¿ U.S. stock futures rode a tailwind of optimism from the most recent job numbers released last week and global markets rose as well. Also on Monday, Knight Capital Group, which is fighting for survival after a disastrous software glitch last week sent trading haywire, said Monday that it has lined up $400 million in financing to continue operations for another day. Also, the founder of Best Buy has offered to buy the company for between $24 and $26 per share. Dow Jones industrial futures rose 10 points to 13,065 and the broader S&P futures added 2.8 points to hit 1,391.80. Nasdaq futures tacked on 10.50 points to 2,681.50. There are no economic indicators being released Monday, so the surprise jobs figures released Friday continued to dominate trading. There are few corporate earns Monday. Tyson Foods posted weaker-than-expected earnings for the third quarter and shares slid 2 percent before the opening bell. So the employment report, released Friday, is in the front of everyone's mind. The Labor Department said 163,000 jobs were added in July. That drove markets higher immediately, despite an uptick in the unemployment rate, to 8.3 percent. Trading in Knight Capital was halted Monday with news pending about its plans to continue operating. Shares had already plunged more than 30 percent before the broker confirmed it had arranged a lifeline to stay alive. The company said in a regulatory filing on Monday that the unnamed investors agreed to buy $400 million of preferred stock that will be converted into about 267 million of its shares. Knight takes orders from big brokers like TD Ameritrade and E-Trade and banks as well. It then routes them to the exchanges where stocks are traded, like the New York Stock Exchange. Its future was thrown into doubt when the trading glitch funneled erroneous orders to the market for 45 minutes Wednesday. The plunge in share value was reminiscent of the sell-off in bank shares during the economic crisis.