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"Stop trading General Mills, influx of orders. Stop trading Northwest Air, influx of orders," command the p.a. speakers at the Pacific Stock Exchange. But the market trend is up. Says Specialist Kurtis Kupiec: "Today the world's a better place."
NEW YORK, 4 P.M.
The banks' moves spur a closing rally. The Dow winds up at 1841.01, a climb of 102.27 points. Trading breaks Monday's volume record. At the bell, Phelan waves from a balcony overlooking the floor. Relieved traders wave back and cheer.
WASHINGTON, 4:30 P.M.
Five senior advisers join Reagan in the White House and urge him to reassure the nation. This time the President tells a group of reporters, "I am willing to look at any proposals" from lawmakers on the budget deficit.
WEDNESDAY, OCTOBER 21
TOKYO, 9 A.M.
The worst is over -- for now. A flood of buy orders propels an explosive rebound on the Kabutocho exchange. As each massive block of offered stock is snapped up, the trading floor erupts in applause. The Nikkei index makes a record gain of 2037.32 points.
NEW YORK, 10 A.M.
The news from Tokyo buoys Wall Street, as do the Fed's reassurances of the previous day on the availability of credit. Major corporations take advantage of greatly discounted prices to buy back large blocks of their own stock. Other bargain hunters also begin to prowl. One broker says the market is moving "from hell to heaven."
LONDON, 5 P.M.
After some swings, London joins the uptick. A Monday-Tuesday loss of $155 billion in stock values is dented by a hefty $48 billion recovery. The one-day stock-exchange index leaps 142.2 points, to 1943.8, a record increase.
NEW YORK, 4 P.M.
Before the final bell, 90 large companies announce plans to buy back their own shares. Phelan has asked the big-fund managers to avoid automatic programmed purchases and, above all, sales. This feeds the surging optimism and causes the Dow's biggest single-day climb ever: up 186.84 points, to 2027.85. More than half of Monday's loss is recovered.
THURSDAY, OCTOBER 22
TOKYO, 9 A.M.
The market starts strongly and does not falter. The Nikkei average picks up 475.05 points.
ZURICH, 9:15 A.M.
Traders at the 100-year-old exchange remain nervous. The market's index sinks 6.7%, from 1047.52 to 975.1.
TORONTO, 9:30 A.M.
Spirits are still high on the floor from Wednesday's lively market. Yet the Toronto index skids 142 points (4.3%) in the first hour. "This is like a yo- yo," laments one trader.
NEW YORK, 9:30 A.M.
Just before the opening bell, Phelan reads aloud a message from President Reagan praising traders for their "calm, professional" work during the frantic week. Citibank lowers its prime rate by a quarter-point, to 9%; other New York banks follow within 20 minutes. Inexplicably, the market plummets 138 points in the first 45 minutes, to 1888.
WASHINGTON, 2 P.M.
Both James Baker and Howard Baker prod Reagan in a series of White House meetings to work toward a market-calming budget compromise. They prep him for his critical 8 p.m. press conference. The President is advised to walk a delicate line: exude confidence about the economy without sounding like Herbert Hoover.
NEW YORK, 4 P.M.