Wave of bad news sends Dow down nearly 360

Source: Agencies  |   2008-6-27  |     ONLINE EDITION

A BARRAGE of bad news including yet another record high for oil drove stocks sharply lower yesterday, hurtling the Dow Jones industrials down nearly 360 points to their lowest level in nearly two years.

The market also worried about fresh signs of trouble in the financial, high-tech and automotive industries. Negative analyst comments sent shares of General Motors Corp stock to their lowest point in more than three decades.

Oil futures shot past US$140 for the first time after the head of OPEC predicted the price of a barrel of crude could rise well over US$150 this year and Libya said it may cut oil production.

That increases the odds that gasoline prices will extend their advance, and that goods and services across the economy will get ever more expensive.

The Dow dropped 358.41 points, more than 3 percent, to close at 11,453.42, its lowest finish since September 11, 2006. Investors rushed for the safety of Treasury bonds, regarded as a haven when the stock market is in turmoil.

The blue-chip index is now 19 percent below its record close last October of 14,164.53.

Oil was far from the only worrisome factor driving stocks lower.

Citigroup Inc stock fell sharply after an analyst give it a "sell" rating and warned investors to expect less from the brokerage sector in an uneasy economy.

Disappointing forecasts from technology bellwethers Oracle Corp and BlackBerry maker Research In Motion Ltd. further soured investors' moods and made the tech sector one of the steepest decliners.

Broader stock indicators also fell sharply, although not to their mid-March lows. The Standard & Poor's 500 dropped 38.82, about 3 percent, to 1,283.15, and the Nasdaq composite slid 79.89, or 3.3 percent, to 2,321.37.