Applause and bell ringing
>> As if on cue the first 2 days in October were marked by a 2% drop in the DOW Jones industrial average. A jittery start to a month riddled with history and superstition in the financial markets.
>> The history suggests October is a scary month legitimately for the market.
>> Last year October saw a 15% decline. The 2 most dramatic single day stock crashes in history came in this month. October 29, 1929 the DOW dropped 12.8% and on October 19, 1987 the DOW dropped a breath taking 22.6% in a single trading session. But the 10th month has also seen 11 bare market turnarounds. In 2002 a long stock slide caused by the dot com bust turned around in October and began a climb upward.
>> There are some fundamental things that tend to go on in October that can create extra volatility in the market.
>> October's financial jitters date back to the 1800s. At harvest time money would leave the cities major banks to pay for food and grain. That put the squeeze on the financial markets making them vulnerable to panics.
>> We stop being an Aquarian society a long time ago and yet that historic calendar pattern continues.
>> In today's markets October is a critical financial reporting month.
>> The reason that October is a little wacky if you will is there's so much news in October. It's the time when companies report 3rd quarter earnings.
>> This will give us a good idea of the direction that we're going to be going into the new year with.
>> This year analysts and traders are bracing for corporate results.
>> October this year is important because we're gonna find out the truth.
>> And that truth is if earnings are robust the recovery is likely on track. If earnings lack luster it'll be a long, slow road to economic health. inaudible CBS News, New York.
==== Transcribed by Automatic Sync Technologies ====
