Shares of Lehman Brothers Holdings Inc. dropped on Monday and kicked off a holiday-shortened week of trading, on talk Barclays PLC will buy the country's fourth-biggest investment bank at a discount.
Lehman's stock has been pressured in recent months. In June, Lehman posted a nearly $3 billion quarterly loss that forced it to raise $6 billion in new capital. Shares of the bank have declined 65.8 percent so far this year.
Following the near-collapse of Bear Stearns, concerns have lingered that other banks may be in trouble on heavy losses from investments in risky mortgage-backed securities.
On Monday, the stock dropped nearly 11 percent to close at $19.81 in heavy trading volume.
On Tuesday, shares set a 52-week low of $19.24, but still rose to finish higher at $20.96. As the week continued, shares gained momentum, rising 49 cents, or 2.2 percent, to $22.85 on Thursday, up 2.7 percent for the week. The markets are closed on Friday for the Fourth of July holiday.
Shares of CIT Group Inc. soared on Tuesday on news the company will sell its home-lending business to Lone Star Funds for $1.5 billion in cash and $4.4 billion in assumed debt.
The stock jumped $2.02, or 29.7 percent, to $8.83 in trading volume of around 44.5 million shares, versus 11.4 million shares on an average day.
On Thursday, shares declined 15 cents to close at $8.25.
On Wednesday, shares of General Motors Corp. dropped to close below $10 for the first time since 1954 when analysts raised concerns about the company's cash needs and whether the company may need to file for bankruptcy.
Also, a Merrill Lynch analyst downgraded the stock to "Underperform" from "Buy," and predicted a continued decline in auto sales through next year.
GM shares on Wednesday fell 15.1 percent to close at $9.98. The session low of $9.96 marked the lowest point since Sept. 13, 1954, when they hit $9.92, according to the Center for Research in Security Prices at the University of Chicago.
Shares rebounded on Thursday, gaining 14 cents to $10.12, as a JPMorgan analyst said bankruptcy concerns are overblown.
On Thursday in an abbreviated session that ended at 1 p.m., shares of graphics chip maker Nvidia Corp. declined.
The company late Wednesday cut its second-quarter revenue forecast because of weakness in certain markets, lower prices and delays for a new product.
Shares declined $5.54, or 30.7 percent, to close at $12.49, and bottomed at $12.40 earlier in the session, a level not seen since 2006.
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