WSJ891027-0078 WSJ891027-0078 = 891027

= 891027

891027-0078 . 891027-0078 . Thursday 's Markets : @ Earnings @ Data Cause @ Stock Fall @ --- @ Industrials Sink 39.55 ; @ Bonds Slip , but Dollar @ Soars Against Pound @ ---- @ By Douglas R. Sease @ Staff Reporter of The Wall Street Journal Thursday 's Markets : @ Earnings @ Data Cause @ Stock Fall @ --- @ Industrials Sink 39.55 ; @ Bonds Slip , but Dollar @ Soars Against Pound @ ---- @ By Douglas R. Sease @ Staff Reporter of The Wall Street Journal 10/27/89 10/27/89

10/27/89

WALL STREET JOURNAL ( J ) WALL STREET JOURNAL ( J ) MONETARY NEWS , FOREIGN EXCHANGE , TRADE ( MON ) STOCK INDEXES ( NDX ) STOCK MARKET , OFFERINGS ( STK ) FINANCIAL , ACCOUNTING , LEASING ( FIN ) BOND MARKET NEWS ( BON ) FOREIGN-EXCHANGE MARKETS ( FRX ) MONETARY NEWS , FOREIGN EXCHANGE , TRADE ( MON ) STOCK INDEXES ( NDX ) STOCK MARKET , OFFERINGS ( STK ) FINANCIAL , ACCOUNTING , LEASING ( FIN ) BOND MARKET NEWS ( BON ) FOREIGN-EXCHANGE MARKETS ( FRX ) TREASURY DEPARTMENT ( TRE ) TREASURY DEPARTMENT ( TRE ) Some lousy earnings reports whacked the stock market , but bond prices fell only slightly and the dollar rose a little against most major currencies . The Dow Jones Industrial Average tumbled 39.55 points , to 2613.73 , in active trading . Long-term Treasury bonds ended slightly higher . The dollar rose modestly against the mark and the yen , but soared against the pound following the resignation of Britain 's chancellor of the Exchequer , Nigel Lawson . Analysts have complained that third-quarter corporate earnings have n't been very good , but the effect hit home particularly hard yesterday . Compaq Computer nose-dived $ 8.625 a share , to $ 100 , and pulled other technology issues lower after reporting lower-than-expected earnings after the stock market closed Wednesday . Later yesterday the nation 's major auto makers added to the gloom when they each reported their core auto operations were net losers in the third quarter . The less-than-robust third-quarter results came amid renewed concern about the volatility of stock prices and the role of computer-aided program trading . Taken together , the worries prompted a broad sell-off of stocks . The number of stocks on the New York Stock Exchange that fell in price yesterday exceeded 1,000 , a key measure of underlying sentiment among technical analysts . Although the government said the economy grew an estimated 2.5 % in the third quarter , in line with expectations , analysts are increasingly predicting much more sluggish growth -- and therefore more corporate earnings disappointments -- for the fourth quarter . `` There are a lot more downward revisions of earnings forecasts than upward revisions , '' said Abby Joseph Cohen , a market strategist at Drexel Burnham Lambert . `` People are questioning corporate profits as a pillar of support for the equity market . '' The bond market was unmoved by the economic statistics . While bond investors would have preferred growth to be a little slower , they were cheered by inflation measures in the data that showed prices rising at a modest annual rate of 2.9 % . That is another small encouragement for the Federal Reserve to lower interest rates in coming weeks , they reasoned . In major market activity : Stock prices fell sharply in active trading . Volume on the New York Stock Exchange totaled 175.2 million shares . Declining issues on the Big Board outstripped gainers 1,141 to 406 . Bond prices were barely higher . The Treasury 's benchmark 30-year rose fractionally . Yield on the issue was 7.88 % . The dollar rose modestly against most major currencies . In late New York trading the dollar was at 1.8400 marks and 142.10 yen compared with 1.8353 marks and 141.52 yen Wednesday . The dollar soared against the pound , which was at $ 1.5765 compared with $ 1.6145 Wednesday .