SEC Follow Up Exhibits Part C SEC_OEA_FCIC_001760-2501

Figure 12 shows the intraday graph for the S&P 500 on October 29, 2008. Of particular
interest on this day, the S&P 500 index increased by 3.25% in less than 15 minutes
between 3:11:18 and 3:26:03, then at the end of the day decreased by 4.92% in 11
minutes between 3:48:48 and 3:59:48. Some commentators attributed this end-of-day
move to a Dow Jones news story reporting comments by Jeff Immelt, CEO of General
Electric (GE). Another news story reports that “traders said hedge funds and mutual
funds were dumping stocks to raise cash to repay clients and lenders, while other
investors were eager to lock in some profit from Tuesday’s huge rally.” 5
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Figure 12
Intraday Values of S&P 500 Index
October 29. 2008
910
9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00
Time
Figure 13 narrows in on the end of the day, and graphs the returns for Energy, Financial,
Health Care, Information Technology, Retail, and “Other” components of the S&P 500.
As the graph indicates, the return pattern on the S&P 500 index was observed in each of
these sectors, but the financial stocks experienced the greatest decline during this period.
Table 2 reports the S&P 500 component stocks having the largest negative returns during
the last 15 minutes of the day on October 29. As the table indicates, many of the worst
performing stocks over this period were insurance companies and other large financial
services firms. Contrary to the assertion that GE stock was driving this decline, GE was
not among the 50 S&P 500 stocks with the most negative returns over this period.
5 “Offhand Comment Sinks GE Stock, Maybe Market,” The Ticker, washingtonpost.com, October 29,
2008. “Dow, S&P 500 fall on profit worry, GE’s outlook,” Kristina Cooke, Reuters, October 29, 2008.
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SEC_OEA_FCIC_001819