New Century Tumbles on Bankruptcy Talk
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New Century Tumbles on Bankruptcy Talk
U.S. Stocks Pare Gains; New Century Tumbles on Bankruptcy Talk
By Michael Patterson
March 8 (Bloomberg) -- U.S. stocks pared their gains as New Century Financial Corp. tumbled on speculation the subprime mortgage lender may file for bankruptcy.
Shares of New Century plunged $1.05, or 20 percent, to $4.11. Investors were speculating the company would seek protection from creditors in bankruptcy court, said Brian Horey, general partner at Aurelian Partners LP in New York.
New Century didn't issue any new statements or federal filings before the stock, which had gained as much as 8.5 percent today, began plunging at midday. Laura Oberhelman, a spokeswoman for New Century, said the company doesn't comment on speculation or market rumors.
The Standard & Poor's 500 Index added 9.81, or 0.7 percent, to 1401.78 as of 2:47 p.m. in New York after earlier climbing as much as 1.2 percent. The Dow Jones Industrial Average advanced 63.04, or 0.5 percent, to 12,255.49, while the Nasdaq Composite Index climbed 12.61, or 0.5 percent, to 2387.25.
Indexes in the U.S. rose after European stocks rallied for a third day, while Japan's Topix index had its best performance since October. India's Sensitive Index gained the most in eight months.
U.S. stocks retreated yesterday after D.R. Horton Inc., the nation's second-largest homebuilder, said a yearlong housing slump will continue in 2007 and the Federal Reserve cited slowing growth in several local economies.
By Michael Patterson
March 8 (Bloomberg) -- U.S. stocks pared their gains as New Century Financial Corp. tumbled on speculation the subprime mortgage lender may file for bankruptcy.
Shares of New Century plunged $1.05, or 20 percent, to $4.11. Investors were speculating the company would seek protection from creditors in bankruptcy court, said Brian Horey, general partner at Aurelian Partners LP in New York.
New Century didn't issue any new statements or federal filings before the stock, which had gained as much as 8.5 percent today, began plunging at midday. Laura Oberhelman, a spokeswoman for New Century, said the company doesn't comment on speculation or market rumors.
The Standard & Poor's 500 Index added 9.81, or 0.7 percent, to 1401.78 as of 2:47 p.m. in New York after earlier climbing as much as 1.2 percent. The Dow Jones Industrial Average advanced 63.04, or 0.5 percent, to 12,255.49, while the Nasdaq Composite Index climbed 12.61, or 0.5 percent, to 2387.25.
Indexes in the U.S. rose after European stocks rallied for a third day, while Japan's Topix index had its best performance since October. India's Sensitive Index gained the most in eight months.
U.S. stocks retreated yesterday after D.R. Horton Inc., the nation's second-largest homebuilder, said a yearlong housing slump will continue in 2007 and the Federal Reserve cited slowing growth in several local economies.
"The market can stay irrational longer than you can stay solvent." - Keynes
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