Plummeting Auto Sales Weighs Down Markets

Despite a smaller than expected drop in construction spending, the markets closed lower with the Dow dropping 82 points to 8953 as auto sales continued to plummet in December. Nasdaq slipped 4 points to 1628.

On the upside

Bargain hunters snapped up shares of American Capital (Nasdaq: ACAS), which was listed as one of the top 10 worst performers on the S&P 500 last year. The stock price of the investment firm plummeted 90.2% in 2008.

Northstar Neuroscience (Nasdaq: NSTR) announced that after much consideration, it will liquidate its assets and dissolve the company.

Navistar International (NYSE: NAV) said that truck sales are expected to rise in 2009 as well as 2010.

On the downside

DA Davidson downgraded UCBH Holdings (Nasdaq: UCBH).

Shares of Chico's FAS (NYSE: CHS) fell ahead of the release of December retail sales figures later this week.

Barclays Capital analyst Robert Drbul said that while heavy holiday promotions may have lifted sales for Saks (NYSE: SKS), 2008 earnings will most likely be impacted negatively. Drbul expects Saks to post a loss for the year.

In the broad market, advancing issues outpaced decliners by a margin of nearly 2 to 1 on the NYSE and by nearly 5 to 4 on Nasdaq. The Russell 2000 which tracks small cap stocks eased a point to 505.