The market was down today by over 4%, making this the worst trading day in 7 years. It is surprising that it didn't fall further. The bankruptcy of Lehman, the takeover of Merrill and the continuing problems at AIG and WAMU all point to massive weakness in the financial sector. Top it all off with more weak numbers about the economy and surprisingly better news about oil prices (which hurt oil stocks) and you are in for a bad day.
My MBA students manage a real money portfolio and we took big hits on energy stocks - with Constellation Energy and Frontier Oil both down over 15%. Citigroup was also off 15%. On the bright side, consumer non-durables did relatively well - showing their general recession proof qualities. Overall the portfolio was off about 3.7%, which at least wasn't as bad the market overall.