The Dow Jones industrial average fell sharply in New York today after Procter & Gamble surprised Wall Street with an earnings warning and a management shake-up. The escalating blue-chip sell-off spread to the rest of the market, leaving most stocks with a loss.
Declining issues outnumbered advancers by a 6-to-5 margin on the New York Stock Exchange, with 1,593 down, 1,350 up and 471 unchanged. NYSE volume totalled 842.29 million shares, against 840.18 million in the previous session.
The Russell 2000 index of smaller companies fell 2.01 to 514.53.
Stocks tumbled after Procter & Gamble officials said fourth-quarter core earnings should be flat with last year's levels. The consumer products maker had earlier predicted a 15-17 per cent increase.
Procter & Gamble's warning followed a similar disappointment in the last quarter. The company replaced chief executive officer, Mr Durk Jager, yesterday with Mr Alan Lafley, president of its divisions for global beauty care and North America.
