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Dow sinks 144
Associated PressNEW YORK - The Dow Jones industrial average fell sharply today after Procter & Gamble Co. surprised Wall Street with an earnings warning and a management shakeup. The escalating blue-chip selloff spread to the rest of the market, leaving most stocks with a loss. The Dow Jones industrial average dropped 144.14 at 10,668.72. The Standard & Poor's 500 fell 9.69 to 1,461.67, and the Nasdaq index fell 13.70 to 3,825.56.
Decliners beat advancers by a 6-to-5 margin on the New York Stock Exchange, with 1,586 down, 1,332 up and 475 unchanged. NYSE volume was 846.02 million shares vs. 843.05 million yesterday. The NYSE composite index fell 3.94 to 651.94; the American Stock Exchange composite index rose 2.81 to 937.77; and the Russell 2000 index fell 2.00 to 514.54.
The 30-year Treasury bond rose 7/32 point, or $2.19 per $1,000 face amount; its yield dropped 1 basis points to 5.90 percent. The 10-year note rose point with its yield fell 2 basis points to 6.12 percent.
Stocks tumbled after Procter & Gamble officials said fourth-quarter core earnings should be flat with last year's levels. The consumer products maker had earlier predicted a 15 percent to 17 percent increase. Procter & Gamble's warning followed a similar disappointment in the last quarter. Today, the company replaced chief executive officer Durk Jager with Alan G. Lafley, president of its divisions for global beauty care and North America. P&G stock fell $5.12 to close at $56.75. Investors made no secret of their frustration with the company's latest bad news. "Shame on you if you disappoint once," said David Sowerby, a vice president at Loomis, Sayles & Co. "If you disappoint twice, you're really in trouble."