Stocks drop amid focus on Lehman, Merrill Lynch - Spokane, North Idaho News & Weather KHQ.com

Stocks drop amid focus on Lehman, Merrill Lynch

NEW YORK, N.Y. - Stock prices are down at midday on Wall Street. Stock prices remain lower at midday, although the key averages backed off their early lows.

Investors have been absorbing the news of Lehman Brothers' bankruptcy and Bank of America's deal to buy Merrill Lynch.

Another financial name, American International Group, is the most active issue on the NYSE, seeing a sharp decline. Oil prices have dropped more than $4 to $96 a barrel in New York as traders react to indications that Hurricane Ike largely spared oil interests in the Gulf of Mexico.

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