Dow Jones Industrial Average Has Worst One-Day Drop Ever

Article excerpt

NEW YORK (AP) - The stock market dropped sharply Monday, yielding to selling that left the Dow Jones industrial average with its largest single-day point loss ever.

The Dow Jones average of 30 industrials fell 45.75 to 1,840.15, exceeding the previous record decline of 41.91 set on April 30.

In percentage terms, the 2.43 percent drop came nowhere close to some past debacles. On Oct. 28, 1929, the average fell 12.9 percent in the Great Crash of that year.

Nevertheless, the losses were pervasive as the market found willing sellers but few enthusiastic buyers. Volume on the New York Stock Exchange came to 123.33 million shares, against 110.91 million Friday.

Analysts said there was nothing special in the news to prompt selling of stocks.

But they said many investors were less than impressed by the recent behavior of the market, which put the Dow at a new high last Friday but left some other closely-watched indicators below their previous peaks.

The Dow Jones transportation average, for one, posted a large loss on Friday and remained well short of record levels.

Under a long-standing doctrine known as the Dow theory, advances to new highs by the industrial average should be ""confirmed'' by similar gains in the transportation average to signal that the market is in healthy shape.

Brokers also said questions about whether the econl stage a hoped-for revival of growth led many investors to conclude that stock prices were too high.

Concern over such things touched off selling in stock-index futures, which quickly spilled over into the stock market itself, through program trading by professional traders conducting multiple transactions. …