Corrected: AIG loss, oil, drug firms rattle investors
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(Corrects 5th paragraph to show Citigroup shedding $400 billion of assets, not saving $400 billion)By Jennifer CooganNEW YORK (Reuters) - Stocks fell on Friday after American International Group , the world's largest insurer, reported a record $7.8 billion quarterly loss, rekindling concerns about financial services companies.Oil's price extended its record-breaking streak, rising above $126 a barrel and raising concern about higher inflation and slower economic growth.Pharmaceutical company shares were a major drag after Mylan Inc reported a wider loss and revenue below analysts' forecasts and Bristol Myers Squibb Co fell on news that a generic version of blood-thinner Plavix may soon be approved in Europe.AIG had to write down assets linked to subprime mortgages and said it would raise $12.5 billion in new capital to strengthen its balance sheet.Another big financial company, Citigroup Inc , said it intends to shed roughly $400 billion of non-core assets in a bid to become more competitive.The Dow Jones industrial average <.DJI> was down 109.99 points, or 0.85 percent, at 12,756.79. The Standard & Poor's 500 Index <.SPX> was down 11.17 points, or 0.80 percent, at 1,386.51. The Nasdaq Composite Index <.IXIC> was down 17.02 points, or 0.69 percent, at 2,434.22.AIG shares were down 6 percent at $41.52.Mylan stock fell 7.7 percent to $11.55, while Bristol Myers stock declined 3.9 percent to $21.90.Energy stocks fell even though U.S. crude oil futures hit a record $126.20 a barrel."At some point oil gets too high for them to make money," said Todd Leone, head of listed trading at Cowen & Co. in New York. "The higher crude goes, the harder it is to pass along higher prices to the consumer."Shares of Exxon Mobil fell 1.4 percent to $88.30. Chevron shares lost 0.9 percent to $96.52 on the NYSE.(Editing by Kenneth Barry) (c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
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