The stock market turned downward today, faced with unexpectedly n
Jul. 15, 1987
NEW YORK (AP) _ The stock market turned downward today, faced with unexpectedly negative news on international trade.
The Dow Jones average of 30 industrials dropped 8.45 to 2,472.89 in the first half hour of trading.
Losers outnumbered gainers by about 2 to 1 in the overall tally of New York Stock Exchange-listed issues, with 371 up, 739 down and 451 unchanged.
Volume on the Big Board came to 31.55 million shares as of 10 a.m. on Wall Street.
Before the market opened, the Commerce Department reported that the nation's trade deficit widened in May to $14.40 billion from $13.32 billion the month before.
The news surprised many Wall Streeters after conjecture had spread on Tuesday that the gap between imports and exports might have narrowed to as little as $11 billion.
The dollar fell in foreign exchange, and interest rates climbed in the credit markets. Prices of long-term government bonds, which move in the opposite direction from interest rates, fell more than $10 for every $1,000 in face value.
Hopes had been increasing lately in the financial world that an improvement in the trade situation and the dollar would encourage the Federal Reserve to relax its credit policy.
ITT Corp. rose 1/4 to 61 5/8 . The company reported second-quarter earnings of $1.73 a share, up from $1.05 in the comparable period last year.
The NYSE's composite index of all its listed common stocks dropped .48 to 174.19. At the American Stock Exchange, the market value index was down .11 at 349.61.
On Tuesday the Dow Jones industrial average jumped 28.38 to a record 2,481.35.
Advancing issues outnumbered declines by about 9 to 5 on the NYSE, with 1,005 up, 550 down and 426 unchanged. Big Board volume totaled 185.85 million shares, against 152.46 million in the previous session.