Traders put Wall Street’s big March rally on hold after the White House rejected turnaround plans from General Motors Corp. and Chrysler.
Financial stocks also weighed on the market as investors worried that banks will need fresh infusions of capital.
Analysts say the pullback, which began with a 148-point drop in the Dow Jones industrial average on Friday, wasn’t a surprise given a 21 percent surge in the index over just 13 days in March.
At the close, the Dow is down 254 points, or 3.3 percent, at 7,522. The Standard & Poor’s 500 is down 3.5 percent. The Nasdaq composite index is down 2.8 percent.
Seven stocks fell for every four that rose on the New York Stock Exchange, where volume came to a light 1.5 billion shares.
(Source: Yahoo Business News)
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4 Responses
GM can be saved only if it declares bankruptcy and files for Chapter 11 reorganization.
then it can get rid of the monkey on its back–the bloated UAW pensions, that are funding retirees all over the State of Florida.
Perhaps they are even more worried that the companies will have to make a profit by producing something of value and selling it for more than the cost of production – as opposed to raiding the Treasury for taxpayer “bailouts”
Golem’s at GM.
File for bankruptcy protection, and get ot of all the silly union contracts plunging the company farther in the hole.
When Obama yells in protecton of the union, GM can turn this aroud on Obama. He prefers a company with thousands of employees to close down, because he’s beholden to the union’s.
GM has a golden opportunity to stand up to the Communist dictator, and say “NO”.
#3 – Obama is the one who suggested bankruptcy, which is vehemently opposed by the UAW since it would cancel their contracts. It looks like your communist turns out to be a good capitalist (unlike the people who have been running the Treasury for the past few years, through a party change, who seem to think the Treasury is a gemach for poorly run corporations).