Wall Street, local stocks see big declines

The share prices of many publicly held companies based or active in the Fort Smith area and Arkansas took a hit Thursday as the New York Stock Exchange and several other equity exchanges saw their values plummet.

The Dow Jones Industrial Average was down almost 1,000 points in early afternoon trading. The trading range marked the biggest plunge since the market crash in October 1987. According to Yahoo! Finance, the DJIA lost 998 points (9.2%) before recovering at the end of the trading session to a 347.8 point loss (3.2%). The NASDAQ fell 82.65 points (3.44%), the S&P 500 dropped 37.72 points (3.24%) and the Dow Jones Transport Index fell 144.97 points (3.18%).

The DJIA ended the tumultuous Thursday at 10,520 points, down 5.7% from a recent high on April 29 of 11,167 points.

Most market watchers blame the falling equity markets on the potential for larger economic problems resulting from the debt problems of Greece and other European countries.

Jeff Collins, an economist with Endeavor Consulting and economist for The Compass Report, said the trading volume and fluctuation suggests to him that investors are uncertain of the true value of equities.

“I think what this speaks to is a broader sense … that there is a strong lack of confidence that the (market) valuations are real. So, little pieces of information can cause wild fluctuations,” Collins explained.

John Taylor, senior vice president of John Taylor Financial-Sterne Agee and a member of the board of directors at Fort Smith-based Benefit Bank, is one who believes the markets are overvalued.

“There is no question the market is overvalued. This shows you how little it takes to bring it back,” Taylor said.

Taylor also said Thursday’s wild swings reflect a growing awareness among the investment community about how serious the European government — primarily Greece, Spain and Portugal — debt and entitlement programs are.

The past few days of market decline has been tough on the shares of publicly held companies based in the area.

Fort Smith-based Arkansas Best Corp. has seen its shares (NASDAQ: ABFS) fall 10.5% from an April 29 closing price of $31.54 to Thursday’s close of $28.20

Shares of Fort Smith-based Baldor Electric Co. (NYSE: BEZ) fell from $40.39 on April 29 to a Thursday close of $34.65 — a 14.2% drop.

Van Buren-based USA Truck shares (NASDAQ: USAK) closed April 29 at $18.59 and settled 9.8% lower to close Thursday at $16.75.

• GOING DOWN
Stock price changes since April 29 (closing prices listed)
Arkansas Best Corp. (Fort Smith)
May 6: $28.20
April 29: $31.54

Baldor Electric Co. (Fort Smith)
May 6: $34.65
April 29: $40.39

Dillard’s (Little Rock)
May 6: $24.56
April 29: $29.98

Oklahoma Gas & Electric (Oklahoma City)
May 6: $38.45
April 29: $41.15

Tyson Foods (Springdale)
May 6: $18.58
April 29: $19.88

USA Truck (Van Buren)
May 6: $16.75
April 29: $18.59

Wal-Mart Stores (Bentonville)
May 6: $53.23
April 29: $53.70

Whirlpool (Benton Harbor, Mich.)
May 6: $102.90
April 29: $110.76