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19, 20, 21, 22,23,
26, 27
could have 3000 on the Dow a single day 22%
S&P 1530 x 100 x 22% = 34K loss
Time magzine have special notes for WALL STREET
Business Notes WALL STREET
http://www.time.com/time/magazine/0,9263,7601871019,00.html
Monday, Oct. 19, 1987
Is this the Big One? That question resounds these days not only in earthquake- wary Los Angeles but also on Wall Street. Tremors shook the stock market last week, fanning fears that a major correction or a crash may be coming. The Dow Jones industrial average plunged 91.55 points on Tuesday(Oct. 13 should be 14th Wendesday), a record one-day drop. The average also set a mark for a one-week decline: 158.78, to close at 2482.21(Fri Oct. 9 last week).
What set the bears running was fears of rising interest rates. On Wednesday, banks raised the prime lending rate from 8.75% to 9.25% 50pts raise, the highest level since early 1986. Even so, the panic fell short of the Big One. Tuesday's drop or Oct. 13 , though large in point size, represented a market decline of only 3.47% because of the market's high level, compared with a plunge of 12.8% in the Black Thursday crash of 1929.
Actually on Oct. 19 1987 Monday drop 22% on a single day much more than 1929 crash, it apparently publish
always prio to event in real time.
Because publish always delayed compared to event in real time. I got an article on OCTOBER 20, 1987.
It reported what was going on OCTOBER 19, 1987. So see the following
BUSINESS DIGEST: TUESDAY, OCTOBER 20, 1987
Published: October 20, 1987
LEAD: THE STOCK MARKET PLUNGE The stock market had its worst day in history. The Dow Jones industrial average plunged an estimated 508 points, to 1,738.74, on trading so heavy that reporting was delayed for hours. More than 604 million shares changed hands, dwarfing Friday's record of 338.5 million shares, and the decline of 22.6% percent was far greater than the drop of 12.82% percent on Black Monday in Oct. 28 1929 in the single day, which ignited the Great Depression.
THE STOCK MARKET PLUNGE The stock market had its worst day in history. The Dow Jones industrial average plunged an estimated 508 points, to 1,738.74, on trading so heavy that reporting was delayed for hours. More than 604 million shares changed hands, dwarfing Friday's record of 338.5 million shares, and the decline of 22.6 percent was far greater than the drop of 12.82 percent on Black Monday in 1929, which ignited the Great Depression. The chairman of the New York Stock Exchange said yesterday's debacle was ''the nearest thing to a meltdown that I ever want to see.'' [ Page A1. ] The Tokyo stock market appeared headed for a record one-day drop today, and the Hong Kong market suspended trading for the week. [ D1. ] In United States exchanges, computers strained under a deluge of trading that their designers did not expect until the early 1990's. [ D34. ] The record plunge was fed in part by huge sales of shares in stock-oriented mutual funds, as investors switched their money into money market funds, bonds and gold. [ D33. ] Most Americans are likely to be hurt by the stock market's drop, economists say. If nothing else, people and businesses will feel poorer, which in the long run could cause a slowdown in the economy and a rise in unemployment. [ A1. ] Small investors searched for news much of the day. Many held on to their stocks, as they tried to determine what really was happening. [ D1. ] In the financial district, some participants said yesterday was a day unlike any other they had ever seen. [ D1. ] President Reagan watched the plunge with concern but at no time considered ordering a halt to trading. [ D32. ] Democratic leaders in Congress blamed the Administration's policies and urged the President to accept a deficit-reduction package that would include tax increases. [ D32. ] Leaders of America's top companies admitted they were shaken and confused by the market's fall. [ 32. ] The plunge could hit hard in New York City, where securities industry employment accounts for about 8 percent of the jobs. [ D32. ] Treasury Secretary Baker met with West German officials in Frankfurt and, Mr. Baker's office said, agreed to work to keep currency rates ''around current levels.'' But Mr. Baker decided to cut short his trip because of the market's ordeal. [ D1. ] OTHER MARKETS Treasury securities prices soared as money flowed in from investors who had sold stocks. Interest rates were lower in all maturities. Interest rates on three-month Treasury bills, for example, dropped to about 6.2 percent from 6.64 percent. [ D1. ] The dollar closed lower against all leading currencies except the Canadian dollar. But gold rose to its highest price in more than four years, at $486.50 an ounce, up $15.50, in New York. [ D26. ] Most futures prices plummeted, including those for livestock, cotton, grain and stock indexes. Precious-metals futures, meanwhile, soared as investors sought safe havens. [ D26. ] THE ECONOMY The operating capacity rate stayed at 81.2 percent in September in the nation's factories, mines and utilities. [ D2. ] COMPANIES The buyout offer for GAF is being reconsidered. Samuel J. Heyman, GAF's chairman and leader of the buyout group, said rising loan costs would require that the bid be revised or dropped. [ D5. ] J. P. Morgan's earnings edged up 3.6 percent, and Security Pacific reported an 8.3 percent increase. [ D9. ] A.T&T. reported a 5.3 percent drop in quarterly earnings, while MCI posted a 22 percent gain. [ D5. ] INTERNATIONAL Japan apparently is choosing the General Dynamics F-16 as its jet fighter, and Mitsubishi is expected to build 170 in Japan. [ D5. ] The Administration reportedly will further lift the trade sanctions levied against Japan last April. [ D6. ] TODAY'S COLUMNS A growing number of employers are cutting their payments to health maintenance organizations. Business and Health. [ D2. ] Foreign investors were actively selling, after consistently pouring money into the bull market. Market Place. [ D14. ]
