Thursday, October 9, 2008 Dow falls below 9,000; GM stock hits lowest level since 1950 David Shepardson / Detroit News Washington Bureau WASHINGTON -- Auto stocks continued their sharp slide Thursday, which contributed to the Dow Jones Industrial Average falling below 9,000 for the first time since 2003.
Investor worries about the credit market and the overall economy have contributed to the overall decline. General Motors Corp. shares fell as much as 22 percent to $5.42 at one point today. Ford Motor Co. also fell again Thursday, down as much as 9.8 percent to $2.40 a share. GM stock was trading around $5.69 a share, down nearly 18 percent at 2:45 p.m.; Ford was at $2.39, down 10 percent. Both companies shares have been hit hard in the past two weeks and the dip in price of GM's shares to $5.42 was the lowest level it had fallen since December 1950. GM was also hurt by news that its European sales fell 1.9 percent to 1.62 million vehicles in the first nine months of the year. Analysts also said that both GM and Ford stocks were hurt by the expiration of a temporary ban by the Securities and Exchange Commission of "short selling" financial stocks. Short selling allows traders to borrow shares betting that the price will decline so they can buy it a lower price and pocket the difference. The ban expired at midnight Wednesday. GM and Ford were both on the list because of their financial interests. Ford owns Ford Motor Credit and GM owns 49 percent of GMAC. Since Sept. 30, Ford has fallen 53 percent. Shelly Lombard, an auto analyst with Gimme Credit, issued a research note on Ford Thursday titled "Penny Stock." "Ford stock is now selling for pocket change," Lombard wrote. "It is, of course, being dragged down by this bear market we're in as well as the reality that, right now, most consumers are reluctant to buy a big ticket item like a car or are unable to get financing. So Ford's sales, both here and abroad, will decline and its operations will continue to burn through cash near-term." You can reach David Shepardson at (202) 662 - 8735 or [EMAIL PROTECTED] This message has been scanned for malware by SurfControl plc. www.surfcontrol.com _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
