The Street got a bit of relief on Monday, as the Dow Jones
Industrial Average had one of its calmest days in quite some time as
investors generally held off on big moves with the presidential
election just a day away. The Dow inched down 5.18 points to close at
9.319.83 on Monday. While most stocks were relatively flat Monday,
there were a pair of big waves amid the calm seas.
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Circuit City Stores Inc. soared 38.46% to close at 36 cents per share.
The ailing retailer announced it would close 155 stores by year's end, or
about 20% of its locations, in a last-ditch cost-cutting effort
amid stagnant sales. Some analysts said the news is just a stark
reminder that the possibility of bankruptcy looms for the retailer. Maybe
Blockbuster Inc. should think about returning to make another offer for
Circuit City at a fraction of its $6 to $8 per share bid.
Hartford Financial Services Group Inc. skyrocketed
57.75% to close at $16.28 after it insisted on Monday that it has more
than enough money to weather the financial storm after its stock took a
major hit last week on rumors of its weak financial health. Hartford
said it has $2 billion more than it needs to qualify for a AA credit
rating. Insurance company shareholders tend to overreact to good news
as this skittish group has been spooked by the American International
Group Inc. debacle. - Michael Rudnick
