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Minyanville's Market Recap: AIG Scares, Stocks Fall

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AIG rumors remind investors of the dog days of summer. Stocks end lower.

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Stocks fell in another up and down session today. The Dow Industrials inched lower -0.02% to 13671, the Nasdaq Composite lost -0.86% to 2750, and the S&P 500 lost -0.10% to 1514.

Rumors of AIG (AIG) taking in massive losses sparked memories of this summer's credit turmoil. The world's largest insurer was speculated to have write-downs of approximately $10 bln in their structured products group. Investors' concern was evident as Toddo noted on the Buzz the release of the news coincided with the "exact time the futures got waxed for five handles (in the midst of a "slow" day)." Although the rumors were confirmed to be untrue later in the day, the damage had already been done. AIG lost -3.21 to $61.79. Other financials were taken down as well. Bear Stearns (BSC) lost -2.19% to $111.05, Morgan Stanley (MS) lost -1.42%, and Citigroup (C) fell -1.41% to $41.23. Toddo also noted Countrywide's (CFC) performance as the stock hit a new all time low. For a complete summary, read his Random Thoughts.

Stocks in the tech sector were mixed today. Akamai (AKAM) beat analyst estimates by a penny as earnings came in at $0.34 per share. The stock surged +14.22% to close at $37.51. But other stocks did not fare so well after earnings. Symantec (SYMC) reported $0.29 EPS vs. $0.26 cons on revenues of $1.44 bln vs. $1.39 bln cons. The stock was driven down -12%; however, as the company issued downside guidance. The performance didn't frighten away Professor Katz; however, as he noted "the company beat on every metric… does it merit a 13% drop in the stock? Absolutely not…" Other notable performances include Apple (AAPL) losing -1.10%, Research in Motion (RIMM) losing -3.28%, and Garmin (GRMN) losing -2.19%. Read Professor Udall's Tech Is Down But Not Out.

In after hours Microsoft (MSFT) reported 1Q $0.45 EPS vs. $0.39 EPS with revenues of $13.76 bln vs. $12.54 bln cons. The company issued in-line guidance with EPS of $0.44-0.46 vs. $0.44 cons. Shares of the company surged +12.86% to $35.25.

Bidu (BIDU) reported 3Q $0.72 EPS vs. $0.70 cons on revenues of $66.3 mln vs. $65.3 mln cons. Although the company issued upside guidance for the fourth quarter, the stock was hit with immediate selling pressure sending the stock down -$15.00 dollars.

In commodities action, crude oil hit new highs rising $3.40 to $90.50. Metals were stronger as well. Gold added +7.1 to 772.70, Copper added 2.80 to 348.05 and Silver added +0.31 to 13.81. Professor Lewis noted silver's performance stating the surge in prices was a bullish sign for the whole precious metals complex. For more summaries, click on Minyanville's Buzz Bits.

Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: AKAM, FFIV, BLK, SCHW, TOL, OXPS, LNN, MA, SYMC, ABX, NEM, TRMB, silver.

Some bearish trade or investment ideas: CSGP, CROX, EQIX, DECK, CF, POT, MOS, RDN, MTG, AMG, RVBD, CMI, TEX, CAT, MBI, SOX, AAPL, CFC, WM.

Thirsty Thursdays, Minyans! Have a great night and see you Friday!
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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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