Closing Bell: Shanghai surprise stomps bulls (AIG, FNM, SVA, MVL, DIS, MS)

American International Group Inc. (NYSE: AIG) was plowed over on the heels of crazy run-ups last week and the week before. AIG was panned in Barron's over the weekend and shares were down close to 11% at $44.70 late in the trading day.

Fannie Mae (NYSE: FNM) lost big and was down after FBR warned that the underlying value may be nil in the mortgage government shops. Shares were down over 6% at $1.90 late in the trading day.

Sinovac Biotech Ltd. (AMEX: SVA) was today's top of the 52-week highs in biotech after securing Chinese approval for its swine flu vaccine. Shares were up over 50% at $9.75 on the news.

Marvel Entertainment, Inc. (NYSE: MVL) is becoming part of The Walt Disney Company (NYSE: DIS) and the Mouse-House after the $4 billion deal to acquire the movie and comic media company this morning. The deal has been approved by the companies and is likely to win holder approval as Marvel shares were up almost 25% at $48.27 before the close of trading. Interestingly enough, S&P said it might downgrade the corporate credit rating of Disney as a result and Disney shares were down o0ver 3% at $26.00 late in the trading day.

Morgan Stanley (NYSE: MS) was panned by the analyst at BofA/Merrill Lynch this morning and was downgraded after the noted said it was no longer cheap at all. Shares of Morgan Stanley were actually down almost 2.5% at $28.79 late in the trading session.