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Local stocks see losses
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Flonnoya Franklin, president and CEO of FJF Wealth Management Co. in Youngstown, reflects on a disastrous day for the Dow Jones Industrial Average. The Dow lost 635 points, the sixth-worst single day since 1899.
- Dow Drops:
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- 8/11: Big dip in Dow to drag on, analysts fear
- 8/10: Dow soars 429 points on Fed statement
- 8/10: Eyeing Dow, many go for gold
- 8/10: ‘Turmoil’ may slow GM’s plans for growth this year
- 8/9: How low will it go?
- 8/9: Local stocks see losses
- 8/9: A worldwide plunge: Experts predict 1 in 3 chance of another recession
- 8/9: As markets buckle, some investors look to buy
- 8/9: Questioning S&P’s political judgment
- 8/9: On Wall Street, fear takes over
By Karl Henkel
YOUNGSTOWN
U.S. stocks took a pummeling Monday, the first day of trading after the Standard and Poor’s downgrading of the nation’s credit rating.
Financial institutions took the biggest beating on the Dow Jones Industrial Average, falling 11 percent. There were similar results in the Mahoning Valley, and many banks took losses that equaled or exceeded the 5.5-percent loss taken by the Dow.
“The banks still have a lot of things to work through,” said Brian Laraway, partner and vice president of Bury Financial Group in Poland. “There’s still a lot of bad debt they need to write off and a lot of investors at this point are selling their investments.”
Shares of First Place Financial Corp., on NASDAQ, lost 19 cents, or 24 percent of their value, and closed at 61 cents.
F.N.B. Corp., the parent company of First National Bank, dropped 95 cents, or 10 percent, to $8.36 on the New York Stock Exchange.
Farmers National Banc Corp., an over-the-counter stock, saw shares fall 25 cents, or 5.5 percent, and closed at $4.30.
Cortland Bancorp, also an over-the-counter stock, saw a 3.8-percent decrease and finished Monday at $7.26 a share.
“Nobody is trying to buy any shares,” Laraway said.
But not all Valley-based stocks took a hit.
NanoLogix, a Hubbard-based technology company, Monday announced that its bacteria-detecting medical breakthrough reached a pinnacle step toward receiving Food and Drug Administration approval.
It’s shares rose 5 cents, or 10 percent and finished at 53 cents per share.