The bipolar market was suffering through a panic episode in Friday midday trading as sour earnings news from some large-cap names dragged down the market, despite some bright spots from Deal Stocks. Overall, the Dow fell 282.57, 2.25% to 12,299.61, and the Nasdaq declined 51.72, 2.22% to 2,279.85.
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American International Group [AIG] was a big loser announcing its largest loss in almost 90 years, while tech barometer Dell Inc. [DELL] had a lackluster fourth quarter. Meanwhile, troubled Ambac Inc. [ABK] slipped following reports that the company has hit a roadblock on its plan to receive new capital. The credit agencies are demanding banks put up more capital for the insurer to maintain its triple-A rating.
But there was some love on the Street for Deal Stocks, including bond insurer Assured Guaranty Ltd. [AGO], which jumped 13.1% after billionaire Wilbur Ross announced he would invest up to $ 1 billion in the company. The investment is a boost of confidence in the bond insurer, which is fighting to keep its crucial triple-A rating.
Meanwhile, on the tech front, 3Com Corp. [COMS] rocketed up 60 cents, or 21%, to $3.51. Investors jumped onto the stock following new hope that Bain Capital LLC and Huawei Technologies Co. will work with regulators for approval to purchase the networking systems and services provider for $2.2 billion. - Gerald Magpily
