Virginia stocks fall after bailout fails
- September 29, 2008
Virginia’s 50 largest public companies saw their stock prices plunge today following the House of Representative’s defeat of a $700 billion bailout plan for the U.S. financial system.
Virginia’s stock prices fell along with the Dow Jones Industrial Average, which plummeted a record 778 points, or 7 percent, on Monday. The S&P 500 fell 8.7 percent and the Nasdaq fell 9.1 percent.
Virginia’s biggest stock losses included : Richmond-based Genworth Financial, down 40 percent, student loan lender Sallie Mae, down 25 percent and electronics retailer Circuit City, down 22 percent.
Richmond-based Circuit City also was reeling Monday by a lower-than-expected earnings report for its second quarter. The company reported a loss of $239.2 million, or $1.45 per share, compared with a loss of $62.8 million, or 38 cents per share, during the same period last year.
Congressional leaders thought they had a deal on the bailout this weekend. The bill would have allowed Treasury Secretary Henry M. Paulson Jr. to buy up bad mortgage debts of struggling companies in order to free up credit markets. Congressional additions included more protections for taxpayer losses and limits on executive pay.
But the House rejected the bill 228-205. The bailout plan, which is widely unpopular, comes just five weeks before congressional elections.
Following are how Virginia’s top 15 stocks fared after Monday’s close:
Altria, down $1.54, $19.35
General Dynamics, down $3.52, $71.40
Dominion Resources, down $1.41, $41.99
Smithfield Foods, down $2.75, $14.36
AES Corp., down $1.18, 11.40
Circuit City, down 29 cents, $1.08
Capital One, down $10.55, $44
Genworth Financial, down $3.14, $5
Norfolk Southern, down $4.43,$ 65.50
CarMax, down 33 cents, $14.09
Gannett, down $1.20, $7
MeadWestvaco, down $2.54, $22.57
Owens & Minor, down $1.54, $47.69
NVR, down $10, $605
Advance Auto Parts, down $1.30, $38.83