The oil inflation and credit crunch woes continue to batter the broader
market and Deal Stocks, as the Dow Industrial Average on Wednesday lost 131.24 points to close at 12,029.06, its lowest close
since just missing the 12,000 mark on March 17. The $2.67 per barrel
jump in crude oil and news of Fifth Third Bancorp's
capital raise -- yet another reminder of the credit crunch's bruising effects -- helped to bring on the bearish behavior.
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Fifth Third tumbled 27.26% on Wednesday to close at
$9.26 per share following news that it plans to raise at least $2
billion in cash and slash its dividend amid mounting credit losses. The
announcement followed a Tuesday report from Goldman, Sachs & Co.
that banks may need to raise $65 billion in capital in addition to the
$120 billion they already have raised. That's $2 billion down, $63
billion to go.
Among the recent headline-making
deal stocks, XM Satellite Radio Holdings Inc. and Sirius Satellite
Radio Inc. recorded significant downward movement, declining 3.26% to
$10.38 per share and 2.8% to $2.43, respectively. The pending merger
partners reversed strong Monday gains, which were sparked by Sunday
news that Federal Communications Commission Chairman Kevin Martin would back a deal between the rivals. - Michael Rudnick
