As lawmakers voted, the Dow Jones Industrial Average tumbled to historic depths, finishing at 777.68 points below its starting point Monday. The Standard & Poor’s 500 Index dropped 106.59 points and the Nasdaq Composite Index lost 199.61 points. It was the largest single day drop in Wall Street for the Dow in its history and one that reverberated throughout the region.
Locally based businesses, such as DreamWorks Animation SKG Inc.; Public Storage; and DineEquity, which runs a host of family-style restaurants throughout the nation, suffered mild to major stock losses amid continued worries about the ongoing housing crisis and credit crunch.
On Monday, shares in DreamWorks fell nearly 4.18% and Public Storage lost 5.29%.
Public Storage, which provides personal storage garages, has been able to withstand much of the economic turmoil that has turned out to be an albatross around many businesses neck, said Clem Teng, vice president of investor relations for Public Storage.
Though their stock fell precipitously Monday, it is up 26% for the year, hitting a 52-week high of $100.77 less than two weeks ago.
“We’re not a debt leveraged company — we don’t have a lot of bank debt on our balance sheet, so we’re not as impacted through the credit crunch and liquidity,” Teng said. “The downturn in housing has hurt us because there is less movement in that business. But we have a tendency to be more resilient in this economy . . . due to the fact that our activity is based on movement.”
But DineEquity, whose company’s stock tumbled 12.11% Monday to finish at just under $16, its lowest point in the company’s stock history, may not be so resilient.