On the 25th Anniversary of Black Monday, Wall Street Drops to Lowest in 4 Months
Wall Street saw the largest one-day drop in stocks since June on Friday, the twenty-fifth anniversary of Black Monday in the US. The Dow dropped 200 points, erasing most of this week's previous gains. The CBOE Volatility Index jumped as fear in the market was apparent. This slowdown came after many disappointing earnings reports this week, which continued with McDonald's (MCD) noting missed earnings and General Electric's (GE) drop in revenue. On the other side was Capital One (COF), who saw shares rise after beating both profit and sales expectations.Also in the US it was reported that home sales dropped in the month of September to 4.75 million. Crude-oil futures fell sharply by the end of the day while the US dollar climbed against several other currencies.
Word on the Street
- Existing US home sales drop for September as a lack of supply pushes up prices.
- McDonald's Corp (MCD) misses earnings and posts its worst quarterly sales growth in nine years.
- General Electric (GE) falls the most in a year after cutting its sales target and weaker demand.
- EU leaders delay important decisions at latest summit, commiting to a Jan. 1 deadline.
- Market sees worst day in four months due to poor earnings reports.
- AMD (AMD) hits lowest point in more than three years on Friday after announcing job cuts.
- Ex-Goldman Sachs (GS) exec Greg Smith's book scheduled to release on Monday falls short.
- Twenty-five years ago today was Black Monday, devastating many investor portfolios.
- Author Nilofer Merchant weighs in on how companies can thrive with trending social technologies.
Published on Oct 19, 2012By InvestorGuide Staff