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Dow Drops 500 as Retail Sales Show Steep Drop
Dow drops 500 after weaker-than-expected retail sales report stokes fears about economy
By TIM PARADIS AP Business Writer
NEW YORK October 15, 2008 (AP)
The Dow Jones industrials dropped as much as 515 points, more than half their huge 936-point advance from Monday, and all the major indexes fell at least 5 percent. Investors agonizing over a faltering economy sent the stock market plunging all over again Wednesday after a disheartening retail sales report convinced Wall Street that a recession, if not already here, is inevitable.
In mid-afternoon trading, the Dow fell 487.92, or 5.24 percent, to 8,823.07 after falling more than 515 points. Broader stock indicators also skidded. The Standard & Poor's 500 index fell 63.49, or 6.36 percent, to 934.52, and the Nasdaq composite index fell 96.05, or 5.40 percent, to 1,682.96.
The government's report that retail sales plunged in September by 1.2 percent — almost double the 0.7 percent drop analysts expected — made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market. The Commerce Department report is sobering because consumer spending accounts for more than two-thirds of U.S. economic activity. The reading comes as Wall Street is beginning to refocus its attention on the faltering economy following stepped up government efforts to revive the stagnant credit markets.
Dow Drops 500 as Retail Sales Show Steep Drop
Dow drops 500 after weaker-than-expected retail sales report stokes fears about economy
By TIM PARADIS AP Business Writer
NEW YORK October 15, 2008 (AP)
The Dow Jones industrials dropped as much as 515 points, more than half their huge 936-point advance from Monday, and all the major indexes fell at least 5 percent. Investors agonizing over a faltering economy sent the stock market plunging all over again Wednesday after a disheartening retail sales report convinced Wall Street that a recession, if not already here, is inevitable.
In mid-afternoon trading, the Dow fell 487.92, or 5.24 percent, to 8,823.07 after falling more than 515 points. Broader stock indicators also skidded. The Standard & Poor's 500 index fell 63.49, or 6.36 percent, to 934.52, and the Nasdaq composite index fell 96.05, or 5.40 percent, to 1,682.96.
The government's report that retail sales plunged in September by 1.2 percent — almost double the 0.7 percent drop analysts expected — made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market. The Commerce Department report is sobering because consumer spending accounts for more than two-thirds of U.S. economic activity. The reading comes as Wall Street is beginning to refocus its attention on the faltering economy following stepped up government efforts to revive the stagnant credit markets.
