The Dow Fell 416 Points, Nasdaq Loses 97

February 27, 2007 5:27 PM EST

The Dow fell 416.02 points today to close at 12,216.24 the Nasdaq lost 96.66 points to close at 2,407.86, and the S&P 500 lost 50.33 points to close at 1,399.04. Oil gained $0.07 to close at $61.46. The markets saw their worst one day drop since Sept, 17, 2001, the day the markets re-opened after Sept. 11, 2001. Stocks fell heavily right at the open after the Chinese markets fell almost 9% (in last night's trading) as investors feared the (Chinese) government would step-in to slow down the market. At approximately 3:00PM EST, the Dow fell another 200 points, down approx. 530 points, before bouncing back to close just above 12,200. Reports said the steep and sudden drop in the market was due to a technical glitch which delayed the accurate reporting of the DJIA. Most analysts suspect continued near-term pressure (we are also hearing sell order could still be backed up), but see strength in the long-term economic outlook.

Volume was very heavy with 4.34 billion shares trading on the NYSE and 3.12 billion trading on the Nasdaq. Decliners crushed Advancers by a margin of 29:5 on the NYSE and 28:3 on the Nasdaq.

In Individual stories, RadioShack (NYSE: RSH) gained 12% after reporting Q4 earnings of $0.62 per share, which may not compare to the consensus of $0.42. Revenues came in at $1.46 billion versus the consensus of $1.47 billion. Sees FY07 EPS of $1.00-$1.20, which may not compare to the consensus of $0.90. Threshold Pharmaceuticals (Nasdaq: THLD) fell 57% after Company announced that a Phase 3 trial of glufosfamide did not show a statistically significant improvement in overall survival compared to best supportive care (BSC) in patients with metastatic pancreatic cancer who had relapsed after gemcitabine chemotherapy.

Earnings due out tomorrow include: Allied Capital (NYSE: ALD), CarMax (NYSE: KMX), CenterPoint (NYSE: CNP), Dollar Tree (Nasdaq: DLTR), Edison Int'l (NYSE: EIX), Interpublic Group (NYSE: IPG), Liz Claiborne (NYSE: LIZ), Martha Stewart (NYSE: MSO), Novelis (NYSE: NVL), Omnicare (NYSE: OCR) and Sprint Nextel (NYSE: S).

Traders will be looking for economic data on Preliminary Fourth Quarter GDP and Chain Deflator (8:30AM EST), Chicago PMI (9:45AM EST), January New Home Sales (10:00AM EST), and Oil Inventories (10:30AM EST).

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