The markets traded lower during the midday after federal regulators seized Washington Mutual and lawmakers attempted to restart failed bailout discussions. The Dow fell 30 points to 10,992 while Nasdaq tumbled 25 points to 2162.
On the upside
Merrill Lynch raised its credit rating on Wells Fargo (NYSE: WFC) and lifted its earnings estimates through 2010 saying that the bank is experiencing strong revenue growth.
Goldman Sachs analyst Steven Kent expects International Game Technology (NYSE: IGT) to announce a restructuring plan that will improve its profit margin.
On the downsideSavient Pharmaceuticals (Nasdaq: SVNT) will file for regulatory approval of its gout treatment Puricase even though the company has not found a partner to develop and markets the drug.
Shares of National City (NYSE: NCC) plunged after Washington Mutual failed and negotiations for the bailout plan stalled.
Despite reassurances from CEO John Mack that discussions for an equity investment in the company from Mitsubishi UFJ Financial Group are ongoing, shares of Morgan Stanley (NYSE: MS) dropped.
In the broad market, declining issues outpaced advancers by a margin of more than 4 to 1 on the NYSE and by more than 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks dropped 12 points to 694.