This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7053788.stm
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Dow Jones tumbles on credit fears | Dow Jones tumbles on credit fears |
(40 minutes later) | |
The Dow Jones, the main US share index, saw shares plummet more than 360 points by the end of the week, amid concerns over the state of the US economy. | The Dow Jones, the main US share index, saw shares plummet more than 360 points by the end of the week, amid concerns over the state of the US economy. |
The benchmark index of blue-chip stocks shed 366.94 points or 2.64% at 13,522.02 by Friday's close of trade. | The benchmark index of blue-chip stocks shed 366.94 points or 2.64% at 13,522.02 by Friday's close of trade. |
The slump followed a warning by equipment firm Caterpillar that the housing slowdown would harm the wider economy and cut its profit forecast. | The slump followed a warning by equipment firm Caterpillar that the housing slowdown would harm the wider economy and cut its profit forecast. |
Turmoil in world markets since the summer has raised fears of a recession. | Turmoil in world markets since the summer has raised fears of a recession. |
'Poster child' | 'Poster child' |
Caterpillar saw its shares down 5.3% to $73.57, and predicted weakness ahead after its earnings results, which missed forecasts. | Caterpillar saw its shares down 5.3% to $73.57, and predicted weakness ahead after its earnings results, which missed forecasts. |
"It's pretty ugly," said Bill Strazzullo, chief market strategist at Bell Curve Trading. | "It's pretty ugly," said Bill Strazzullo, chief market strategist at Bell Curve Trading. |
"A company like Caterpillar should be a poster child for global growth and benefits of the weak dollar," he said. | "A company like Caterpillar should be a poster child for global growth and benefits of the weak dollar," he said. |
"It makes you question: Is global growth really that strong? Has the earnings kick from the weak dollar played itself out?" | "It makes you question: Is global growth really that strong? Has the earnings kick from the weak dollar played itself out?" |
The fall came on the twentieth anniversary of Black Monday - the day when stocks saw their biggest fall on the Dow Jones, losing some 23%. | The fall came on the twentieth anniversary of Black Monday - the day when stocks saw their biggest fall on the Dow Jones, losing some 23%. |
Andy Brooks, head of trading at T Rowe Price, said: "Some of the earnings reports were a little disappointing but not that bad." | Andy Brooks, head of trading at T Rowe Price, said: "Some of the earnings reports were a little disappointing but not that bad." |
"I think we're responding emotionally to the 20th anniversary of the October 1987 stock market crash. I'd like to laugh except it hurts." | "I think we're responding emotionally to the 20th anniversary of the October 1987 stock market crash. I'd like to laugh except it hurts." |
For stocks to fall by such proportions nowadays would mean a drop of around 3,000 points based on current market levels. | For stocks to fall by such proportions nowadays would mean a drop of around 3,000 points based on current market levels. |
Global growth | |
The technology-laden Nasdaq fell 74.15 points or 2.65% to 2,725.16, while the broad-market Standard & Poor's 500 index declined 39.45 points 2.56% to 1,500.63. | The technology-laden Nasdaq fell 74.15 points or 2.65% to 2,725.16, while the broad-market Standard & Poor's 500 index declined 39.45 points 2.56% to 1,500.63. |
Even though stocks have been volatile since the summer, with fears that the US housing slowdown would trigger broader problems, not long before indexes had been hitting record highs. | Even though stocks have been volatile since the summer, with fears that the US housing slowdown would trigger broader problems, not long before indexes had been hitting record highs. |
Finance leaders from G7 nations sought to mitigate the damage to the global economy in the wake of the credit crisis during meetings on Friday in Washington. | |
Ministers issued a statement pledging that they were "committed to doing our part in sustaining strong global growth," ahead of talks over the weekend involving the IMF and the World Bank. |
Previous version
1
Next version