U.S. Stocks Down After Early Rally, Philly Companies Feel the Heat

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After “Black Monday,” U.S. stock prices seemed poised to rebound on Tuesday — until a late-day tumble saw the Dow Jones Industrial Average fall 205 points. Stocks began rising on Tuesday after China lowered interest rates one-quarter of a percentage point, fueling hopes that the country will take measures to strengthen its economy.

Stocks were in free fall for a few minutes on Monday morning on fears about China’s economy and debt. After a volatile day, the Dow ended Monday down 588 points, a 3.6 percent drop. Philadelphia-based public companies felt the pain on Monday, as the top 10 local businesses on the Fortune 500 list saw their stock prices fall significantly. Tuesday was no different, as nine out of 10 saw stock prices fall, while one stayed the same.

Economist and venture capitalist Richard Vague says that we’re hardly out of trouble yet because China’s economy grew mostly from runaway lending (much like the U.S. economy did in the years leading up to the recession.) Both economies are so connected that if China falters, it’s felt deeply in the U.S. stock market. Vague explains the current financial crisis in a BizPhilly interview here.

The following chart displays how Philly’s top publicly traded companies performed on Tuesday. (Click on the company name for more detailed stock info.)