The major indices extend their losses in choppy trade. Volume is
heavy, with 562 million shares already exchanging hands on the NYSE.
Crude prices are down 2.5% to $87.81 per barrel after the government's
weekly energy report showed higher than expected stockpiles. Crude
prices are down 40% from their all-time high of $147.27 that was
reached on July 11.
Energy stocks (-1.1%) went on the retreat in conjunction with crude prices.
The Dow is underperforming, with Bank of America (BAC 21.74, -2.02) acting as a drag.
BofA shed more than 25% on Tuesday after it preannounced disappointing
earnings, gave a dour outlook, cut its dividend by 50% and announced
plans to sell $10 billion in common stock to shore up capital. Today,
BofA is down 8.5% after its common stock offering was priced at just
$22.00 -- 31.7% less than the Monday's closing level announcement and
7.5% below yesterday's closing level. As a result, the offering is
highly dilutive to existing shareholders, prompting the drop in the
stock.