Orange County Register

Auto bailout spurs stock jitters

The Dow Jones Industrials plunged 5.4 percent today, losing 445 points to close at 7,553.56, the second consecutive day the index lost more than 5 percent. It was just 13 months ago — Oct. 9, 2007 — that the Dow hit its all-time high of 14,164.

Other markets also dived. The S&P 500 lost 54 points or 6.7 percent, to close at 752.44. It was the lowest close since 1997 for the index of major U.S. companies.

The Nasdaq slumped 5.1 percent, losing 70.30 points to close at 1316.12.

Behind the falling prices: Concerns about the viability of the bailout plan for automakers, a spike in national unemployment claims and growing wariness of major financial institutions, such as Citigroup Inc. and JP Morgan Chase & Co.

Related stories …

• Poll:  Should unemployment insurance be extended?
• Congress punts bailout. You agree?
• Hull: car makers run by bean-counters, not car guys
• And you thought that economic forecast was bad. . .
• How about no new taxes on struggling taxpayers?
• State budget: A federal bailout for California?
• OC lawmakers to denounce Entertainment Tax
• 39% of O.C. home sales are foreclosures

Other business news …

• O.C. starter-home requires $85,800 salary — half 2005’s level
• Mall, department stores extend hours for holidays
• This house is a ‘fixer’ — for $2,299,126
• Taco Bell is not hunkering down
• FDIC moving to Irvine, now hiring
• O.C. hotel occupancy drops 7.6% in Sept.

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