Despite plans by the Federal Reserve to purchase $400 billion worth of long-term Treasuries, the markets closed sharply lower with the Dow plummeting 282 points to 11,124 after Moody’s downgraded the debt ratings of Bank of America, Citigroup and Wells Fargo. Nasdaq plunged 52 points to 2538.
On the upside
The Delaware Supreme Court affirmed an appeal by Liberty Media (Nasdaq: LINTA) to split its business into two separate entities.
Analysts named JA Solar Holdings (Nasdaq: JASO) as one of three solar stocks with much upside potential.
The Veterans Department will no longer use Roche’s Avastin to treat wet age-related macular degeneration. Renegeron Pharmaceuticals’ (Nasdaq: REGN) Eylea macular degeneration treatment is awaiting FDA approval.
On the downside
Odyssey Marine Exploration (Nasdaq: OMEX) will request a hearing before full Eleventh Circuit Court of Appeals judges to protest a decision made by a panel of three judges.
Production cuts by Alpha Natural Resources (NYSE: ANR) and Walter Energy (NYSE: WLT) weighed down shares of Cliffs Natural Resources (NYSE: CLF) and Patriot Coal (NYSE: PCX).
Moody’s Investors Service downgraded the debt ratings for Bank of America (NYSE: BAC), Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC).
In the broad market, declining issues outpaced advancers by a margin of more than 9 to 2 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks plummeted 25 points to 664.
