DJ US Stocks Plummet On Recession Fears; Harley-Davidson Drops
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By Karen Talley
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--As stocks fell on fears of a recession Friday, Harley-Davidson plunged on a production pullback, Office Depot dropped on estimate reductions but VeriFone Holdings advanced on a strong outlook.
The Dow Jones Industrial Average lost 249.97, or 1.9%, to 13113.38, as 29 of 30 members fell.
Economically-sensitive Dow components suffered most, with General Motors dropping 1.50, or 4.8%, to 29.55; aluminum producer Alcoa losing 1.63, or 4.5%, to 34.87; and industrial Honeywell International declining 1.95, or 3.4%, to 54.71.
Dow member Wal-Mart Stores fell 37 cents, or 0.9%, to 42.39, close to the eight-year low of 42.35 it hit on Wednesday. For the week, Wal-Mart lost 2.8%.
The DJIA's only gainer, Johnson & Johnson, added 2 cents to 61.68.
For the week, the Dow lost 244.36, or 1.8%, its biggest weekly drop since the end of July.
The Nasdaq Composite Index fell 48.62, or 1.9%, to 2565.70. For the week, the Nasdaq lost 30.66, or 1.2%, its first drop in three weeks.
The Standard & Poor's 500 Index fell 25, or 1.7%, to 1453.55. For the week, the S&P 500 fell 20.44, or 1.4%, its biggest weekly decline in a month.
The New York Stock Exchange Composite Index fell 151.11, or 1.6%, to 9486.44. For the week, the NYSE composite declined 110.54, or 1.2%.
"By showing an outright decline in jobs, as well as downward revisions, the payrolls data lent more evidence that credit problems that have emerged this year are now beginning to affect the economy in a serious way," said Kevin Caron, market strategist in the private client group at Stifel Nicolaus. "Under these conditions, stock prices historically have underperformed."
Caron said that since 1929, in the first six months of a recession, stocks have underperformed bonds more than three-quarters of the time by an average of 11%.
Harley-Davidson fell 5, or 9.2%, to 49.09, a 15-month closing low. The iconic motorcycle maker cut its third-quarter and full-year production targets amid sharp sales weakness in August. For the week, Harley-Davidson dropped 8.7%.
Office Depot dropped 2.14, or 9.8%, to 19.80, among the top five NYSE percentage decliners. Following an industry conference, a number of analysts cut their earnings estimates for the office supplies retailer, citing company, not industry-specific, issues.
VeriFone Holdings rose 2.19, or 5.9%, to 39.18, a top 10 Big Board percentage gainer. Third-quarter net income fell to $13.4 million, or 16 cents a share, from $16.8 million, or 24 cents a share, on acquisition charges and higher expenses, but the electronic payment systems maker forecast full-year earnings that beat analysts' expectations.
Volume on the New York Stock Exchange was 1.46 billion shares. Down volume exceeded up by 1.31 billion to 142 million and stocks that fell in value exceeded those that rose by 2,569 to 752.
-By Karen Talley, Dow Jones Newswires; 201-938-5106; karen.talley@dowjones.com
(END) Dow Jones Newswires
September 07, 2007 16:44 ET (20:44 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.- - 04 44 PM EDT 09-07-07 |
