The issues are:
1) forced selling & redemptions in the last hour
2) continuing uncertainty in credit markets
3) inability to determine earnings with credit uncertainty
4) financials: concerns about wider losses (credit card losses, commercial real estate) and capital raises
GM down 31 percent to the lowest level since 1950 on worries that global auto sales will slow dramatically in 2009.
Insurers like Prudentialand Protective Life were down 23 and 44 percent respectively as traders believe insurers will have to raise more capital soon. Earlier in the week Allianz invested $2.5 billion in Hartford Financial.
Teen and specialty retailers reported September same store sales today, and as with department stores yesterday they are generally below expectations. Abercrombie,TJX, Pier One and Men's Wearhouselowered guidance; Chicos withdrew the earnings guidance for the rest of the year.
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