ChicagoTribune: Dow celebrates '87 crash anniversary with drop of 367
By Bill Barnhart | Tribune markets columnist
3:22 PM CDT, October 19, 2007
Stocks fell hard on Friday, the 20th anniversary of the Oct. 19, 1987, stock market crash.
The Dow Jones industrial average closed down 366.94, or 2.6 percent, to 13,522.02. Twenty years ago, the Dow sank nearly 23 percent.
Disappointing quarterly results issued early Friday by Peoria-based Caterpillar, a global maker of construction and mining equipment, send stocks lower generally. In its earnings statement the company, which is a component of the 30-stock Dow industrials, said, "Many U.S. industries important to our sales are in recession."
Other U.S. multinational industrial giants, including Honeywell International and 3M, lost ground. Honeywell raised its sales and earnings forecast for the full year but said U.S. results could slow.
All 30 of the Dow industrials closed lower. Losing stocks outnumbered winners on the New York Stock Exchange by more than a 5-to-1 ratio. All of the 10 major sectors of the Standard & Poor's 500 index closed lower.
Oil company stocks fell along with the price of crude oil in futures trading. After hitting a record-high $90 a barrel early in Friday's session, crude oil for November delivery settled down 87 cents, to $88.60.
Small-company stocks were hot harder that large-cap companies. The Russell 2000 index of small-company stocks dropped more than 3 percent.
One of the few major stocks to rally was Internet search service Google. Shares edged higher after the company late Thursday posted better-than-expected third-quarter results.
Treasury securities rallied sharply, as investors sought a safe haven from the stock market's retreat.
bbarnhart@tribune.com
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If you take anything I say as advice, you're crazier than I am.
AI
