Airline stocks hit Dow

A SETBACK for struggling air carrier UAL took its toll on aerospace stocks and the broader market, pushing the major indexes lower at midday yesterday.

Around 11.35 am ET, the Dow Jones industrial average, down 104.70 to 8633.15 and the Standard & Poor's 500 index, down 9.65 to 907.93, declined around 1%, while the Nasdaq composite, down 16.09 to 1414.26, dipped more modestly.

United Airlines parent UAL was dealt a blow that seemed to push the air carrier toward a likely bankruptcy filing. A federal panel turned down the company's request for $1.8 billion in loan guarantees, saying the company's business plan was based on unrealistic revenue projections.

The New York Stock Exchange halted trade of the stock prior to yesterday’s open, saying that it expected news about UAL, although the company said it had nothing to announce.

Market breadth was negative. On the New York Stock Exchange, decliners topped advancers 2 to 1 as 462 million shares changed hands. On the Nasdaq, losers beat winners 9 to 5 as 611 million shares traded.