US stocks took a big tumble overnight as concerns over the duration of the recession dragged on the market ahead of the start of the second quarter reporting period. Talk of a second government stimulus package fuelling concerns that the economy is not yet on the road to recovery.
The Dow Jones industrial average fell 161 points to 8,164. The S&P500 Index lost 18 points to 881 and the NASDAQ closed 41 points weaker at 1,746.
In company news: Shares in oil company ConocoPhillips (NYSE:COP) dropped 2.06 per cent to $39.99. The company forecast second quarter exploration costs before tax of $225 million and says it expects to report output for the quarter of 1.86 million barrels of oil equivalent a day.
Railcar equipment manufacturer Greenbrier Companies Inc (NYSE:GBX) shares fell 8.82 per cent to $6.31. The company posted a profit in the third quarter. Reuters reports that the company is to furlough 550 additional workers at a facility in Mexico when it ceases railcar production at the facility.
Credit card issuer Discover Financial Services (NYSE:DFS) shares plunged 10.76 per cent to $9.37. In an effort to help repay $1.2 billion in bailout funds that the company has received from the government, Discover Financial Services says it plans to offer $500 million of common stock. Shares in designer and manufacturer of catheter based technologies Hansen Medical Inc (NASDAQ:HNSN) plummeted 33.4 per cent to $3.15. The company posted revenue for the second-quarter that came in below expectations, saying the result had been impacted by delays in purchase decisions by customers.
Checking the NASDAQ Top 100: The best performer was Steel Dynamics rising 2.26 per cent to $13.57. Marvell Technology Group and Ross Stores also closed higher.
On the downside, Sears Holdings was the worst performer falling by 6.01 per cent to $59.75. Wynn Resorts and Seagate Technology also closed weaker.
