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Andreas,
INTC was down after market trading but everything else was stable. There are a lot of theories about today's sell-off. This articles tells me no one agrees:
"Dow Plunges on Expiry, Weak Dlr; Gillette Warning Weighs
PR Newswire - August 15, 1997 17:17
%FIN V%PRN P%PRN
NEW YORK, Aug. 15 /PRNewswire/ -- Share prices ended sharply lower
Friday, pressured by double-witching option expiration as well as
dramatic losses in the dollar, with an earnings warning from Gillette
raising concern over third-quarter profits, Market News Service
reported Friday.
The Dow Jones industrial average ended at its lows, dropping
247.37 or 3.1% to 7,694.66, and though marking the second largest drop
in terms of total points the percentage decline was well outside the
average's 100 worst sessions. The Standard & Poor's 500 index fell
23.96 to 900.81.
Volume on the New York Stock Exchange was a surprisingly moderate
534.4 million shares, with 714 advancing, 2,116 declining, and 521
unchanged.
Weighed down by the expiry of stock and index options, the Dow
moved lower from the outset of trading, extending a losing streak that
has seen eight declines in the last 12 sessions and a drop of 6.8% from
the Aug. 6 record of 8,599.
Dealers also pointed to weakness in the dollar as a key negative
factor for the session, souring investors' appetites for U.S. assets in
general. The currency dropped nearly four pfennigs to as low as
DM1.8150 during the session amid worries that the Bundesbank will
be forced to protect the deutschemark by raising interest rates.
Share prices, particularly in the consumer products group, were
especially hard hit by a surprise earnings warning from industry
leader Gillette, an announcement that echoed Coca-Cola's earlier
warning over their upcoming profits.
Unlike other recent negative sessions which were dismissed as
bouts of profit-taking, traders warned that this session, especially
given the earnings troubles in the consumer product sector, could in
fact mark the beginning of a significant retracement.
"Are the losses tied to the shenanigans of expirations, or are we
headed for something quite serious?" asked Mace Blicksilver, chief
trader at Credit Lyonnais. Blicksilver said the "jury is still out"
but he stressed the wider risks posed by Gillette's warning could tip
the balance to the negative.
Some traders said the Dow's sharp retracement from its early August
record is not alarming and could trigger bargain hunting next week,
provided the dollar and bonds stabilize and provided that the
technology sector, in particular Intel and Microsoft, remains firm.
Gillette fell 4 1/16 to 86 after the company warned that economic
weakness in Japan and Germany will hurt its exports and in turn its
bottomline. Coca-Cola, which issued a similar warning on Monday, fell
1 5/16 to 58 3/4.
Delta Air Lines lost 11/16 to 87 1/16 after naming a new
president and chief executive from outside the company, the first time
in its history. Analysts said the appointment of Leo Mullin is an
attempt to bring new ideas to the carrier.
Northwest Airlines slipped 1/8 to 40 after the Minneapolis-St.
Paul Star Tribune reported that the company's low-air fare program has
boosted passenger loads and is likely to be expanded.
SOURCE: Market News Service
NOTE TO EDITORS: Market commentary from Market News Service is
transmitted on a daily basis by PR Newswire."
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