Aug 24, 2015 Uncategorized Comments Off on Dow pulls back from opening drop of more than 1,000 points, following stocks tumble worldwide (Los Angeles Times)
August 24, 2015
By James F. Peltz
The U.S. stock market had a wild Monday morning in response to another sell-off in China and other major countries, with the Dow Jones industrial average first plunging more than 1,000 points before surging back to trim its losses.
The blue-chip industrials were off about 350 points, or 2.2 percent, at nearly 17,000 after skidding as much as 1,089 points moments after the opening bell.
Nonetheless, the average has lost 1,290 points in the last three days, a drop of 12.3 percent, from its record high 18,312.39 set on May 19.
The Dow’s worst point drop for a full day was 777.68 points on Sept. 29, 2008, which amounted to a 6.98 percent drop. The average’s worst percentage decline for a full session was 22.6 percent on Oct. 19, 1987.
Other key U.S. indexes also tumbled Monday into so-called correction territory — a decline of 10 percent or more — over the three days.
The benchmark Standard & Poor’s 500 index was down less than 50 points, or 2.2 percent, in early trading to about 1,920.
The Nasdaq composite index skidded about 95 points, or 2 percent, in early trading to about 4,600.
Among the market’s leading stocks, Apple Inc. fell 5.6 percent to $99.88 a share, General Electric Co. was down 4.9 percent at $23.39 and Netflix Inc. plummeted 10.8 percent to $93.15 a share.
Traders looking for a safer haven bid up Treasury bond prices, sending their yields sharply lower. The yield on the 10-year Treasury bond fell below 2 percent for the first time since April, to 1.96 percent.
U.S. and foreign stocks again followed a massive sell-off in China amid growing fears about China’s slowing economy and the ripple effect it could have on corporations worldwide that do business with China.
China’s benchmark indicator, the Shanghai composite index, tumbled 8.5 percent on Monday, while the Nikkei index in Japan skidded 4.6 percent, as did the Stoxx Europe 50 index in Europe. Major indices also fell in Germany and Taiwan.