Thursday, November 1, 2007

Dow drops over 366 points on anniversary of Black Friday

by The Oregonian

Friday October 19, 2007, 1:22 PM

The Dow Jones industrial average dropped more than 300 points Friday -- the anniversary of the Black Monday crash 20 year ago -- as investors were frightened by lackluster corporate earnings, credit concerns and rising oil prices.



The market turned sharply lower Friday after Standard & Poor's again reduced its ratings on residential mortgage-backed securities. The latest reduction, on more than 1,400 types of securities, added to investors unease about credit quality.

In the final hour of trading, the Dow Jones industrial average fell 366.94, or 2.64 percent, to 13,522.02. The Dow is down for the fifth straight session.


Broader stock indicators also fell. The Standard & Poor's 500 index fell 39.45, or 2.56 percent, to 1,500.63, and the Nasdaq composite index dropped 74.15, or 2.65 percent, to 2,725.16 The Nasdaq fell below the noteworthy technical level of 2,750, adding to selling pressure.

The Russell 2000 index of smaller companies fell 26.24, or 3.18 percent, to 798.79.

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