Dow drops below 12,000
Stocks tumbled Friday on escalating worries about the financial and automotive sectors and rebounding oil prices. The major indexes fell by more than 1 ½ percent, and the Dow Jones industrial average gave up more than 200 points to end at its lowest levels in three months.
While investors have seen other triple-digit days in the past year since concerns about the economy began emerging, the Dow’s first finish under 12,000 since mid-March could deal investors a psychological blow.
An afternoon downgrade of automakers helped draw out sellers in the stock market while Treasury prices jumped as investors sought the safety of government debt.
DETROIT
Ford delays new pickup
Faced with a continuing plunge in pickup and SUV sales, Ford Motor Co. on Friday tried to deal with the mess by delaying production of the new F-150 pickup and announcing further factory cuts.
After Ford’s announcement, Standard & Poor’s Ratings Services said it is reviewing ratings on Ford, Chrysler LLC and General Motors Corp. and might lower them because of the deteriorating U.S. auto market. Also, Moody’s Investors Service changed its ratings assessment for Ford and Chrysler from stable to negative. Lower credit ratings can boost a company’s borrowing costs.
Ford also said Friday that its loss on automotive operations will worsen in 2008 and that it will be difficult for the company to break even in 2009 as it had predicted just one month ago.
WASHINGTON
U.S. steel wins trade case
U.S. steel pipe manufacturers, who have been battling a surge in imports from China, won a major victory Friday when the International Trade Commission cleared the way for the imposition of stiff penalty tariffs for the next five years.
The commission voted 5-0 that the U.S. industry was being harmed by the import of circular steel pipe. The decision marked the first time a U.S. industry has won a decision to impose tariffs on a Chinese product based on the argument that the Chinese government was unfairly subsidizing a Chinese industry.
The ruling means penalty tariffs ranging from 99 percent to 701 percent will be imposed on Chinese imports of circular welded pipe, which is used in construction.