Stocks Slide As Oil Prices Rise Sharply --- Expectation of Cuts In Earnings Estimates Drives Down Shares
NEW YORK -- Stock prices tumbled because of soaring oil prices and the growing expectation among investors that analysts are about to unleash a torrent of reduced corporate-earnings estimates.</br></br>The October futures contract for crude oil advanced $1.66 a barrel to close at $31.43. There were news reports of violence against Americans in Kuwait, which could spark a military confrontation. Oil's climb helped drive the Dow Jones Industrial Average down 31.93 points in light trading to 2596.29.</br></br>Bonds rose slightly, with traders reluctant to change positions ahead of today's report on how the nation's work force fared last month. The consensus expectation is that the unemployment rate will be unchanged from July's 5.5%.</br></br>The dollar continued to slump against most other major currencies. The yen continued to rise on speculation that Japanese interest rates are likely to increase while those in the U.S. decline.</br></br>Although rising oil prices didn't help, it was reports of analysts readying earnings-estimate cuts that sent shivers through the stock market. For example, Smith Barney downgraded its estimate for Motorola, and the stock plunged 7 5/8 to 61 1/2.