Stocks "buckled Tuesday as investors grew increasingly
fearful that sickly Asian economies would drive down
corporate earnings at U.S. companies in the second half of
the year," according to Gretchen Morgenson of the N.Y.
TIMES. The Dow lost 1.3% on the day, closing at 8462.85.
Tuesday's drop "came amid a raft of fresh and frightening
world developments," including a Japanese report that that
country's "worst slump since World War II was deepening."
That sent the Japanese yen "plunging to 147.27 versus the
dollar, setting an eight-year low" (N.Y. TIMES, 8/12). In
DC, Bluestein & Sugawara write the drop came "amid mounting
fears that Asia's troubles pose a serious threat to the
earning power of U.S. corporations and, ultimately, the
confidence of American consumers." Although the Asian crisis
has sparked steep drops in markets "elsewhere several times
since its onset a year ago, the latest bout of contagion has
raised the prospect that its effects are rapidly becoming
more global in scope" (WASHINGTON POST, 8/12).
TV SOUND BYTES: CNBC's Ron Insana: "Japan's economic
conditions seem to be worsening rather than improving.
There are worries about Indonesia, Malaysia and other
countries" ("NBC Nightly News," 8/11). ABC's Bob Jamieson:
"A new study links Asia's troubles to the loss of as many as
100,000 U.S. jobs this year. Wall Street is also losing
confidence that Japan's new government will move
aggressively to revive its economy" ("World News Tonight,"
8/11). Tom Schlesinger, A.G. Edwards: "People have to
realize this is not going to be over quickly, and nobody can
predict how long it's going to go on, how deep it's going to
get" ("The Edge," CNBC, 8/11). CNN's Rhonda Schaffler:
"Analysts are now saying earnings fallout from Asia -- once
thought to be a one or two quarter problem -- may spread
into next year" ("Moneyline," CNN, 8/11).
