Stocks Fall; Dow Off 39.79
Nov. 24, 1997
NEW YORK (AP) _ Stocks opened lower today as foreign markets bristled at news that Japan's deepening fiscal crisis had forced a major brokerage to shut down there.
At 10 a.m. on Wall Street, the Dow Jones industrial average was down 39.79 at 7,841.28. Broad-market indicators were also posting modest losses.
The damage was heavier on European markets, which had closed on Friday by the time that Japanese news services reported the impending collapse of Yamaichi Securities. The 100-year-old brokerage, battered by a payoff scandal and the sharp slump in Japanese stocks prices, shut down today with about $24 billion of debt.
U.S. stock prices pulled back Friday afternoon as the news broke, but rebounded soon after to post some decent gains. Japanese financial markets, closed today for a holiday, won't be able to digest the news until Tuesday. In Europe today, Frankfurt's DAX index fell 3.3 percent and London's FT-SE 100 was down 1.5 percent.
Declining issues outnumbered advancers by a 5-to-2 margin today on the New York Stock Exchange, where volume came to 59.63 million shares.
The Standard & Poor's 500 list was down 4.25 at 958.84, and the NYSE composite index was down 2.31 at 500.54.
The Nasdaq composite index was down 8.58 at 1,612.17, and the American Stock Exchange composite index was down 3.56 at 669.58.