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U.S. markets plummet further Friday

NEW YORK, Oct. 10 (UPI) -- The Dow Jones industrial average opened with a 600-point plunge Friday, continuing its streak of negativity.

The fall followed hard knocks in Asian and European markets, which also fell. The Hang Seng stock market in Hong Kong lost 7.2 percent, while the S&P/ASX 200 index in Australia fell 8.3 in its largest single-day drop on record.

Trading at the Vienna Stock Exchange was halted after stocks fell 10 percent at the opening bell, The Wall Street Journal reported.

The DJIA fell to 8,333.07 in midmoring trading, off 3.61 percent on a loss of 310.07 points. The Standard & Poor's 500 lost 32.70 points, off 3.59 percent, to 877.22. The Nasdaq composite index lost 1.93 percent to 1,613.36, down 31.76 points.

The benchmark 10-year U.S. Treasury bond fell 23/32 to yield 3.871 percent.

The dollar was mixed. The euro fell to $1.3573, compared to $1.3609 Thursday. Against the Japanese yen, the dollar fell to 99.01 yen, from 99.91 yen Thursday.

In Tokyo, the Nikkei average lost 9.62 percent, down 881.06 points to 8,276.43.

Caterpillar to make organizational changes

PEORIA, Ill., Oct. 10 (UPI) -- Caterpillar Inc. said it is creating five new divisions, including one in China, to better serve its global customer base.

Starting Jan. 1, 2009, Vice President Tom Bluth will head the Earthmoving Division, which will be based in Beijing, the company said.

Vice President Mary Bell will head the new Building Construction Products Division, Vice President Chris Curfman will lead the new Mining Division and Vice President Bill Springer will lead the newly created Quarry & Waste Division, which will also cover government and defense customers, the company said in a statement Thursday.

Vice President Gary Stampanato will lead the fifth new division, Excavation, which will include all excavators and articulated trucks, Caterpillar said.

"We are well-positioned for long-term success," Chairman and Chief Executive Officer Jim Owens said in the statement. "By streamlining the organization and clarifying roles and responsibilities, we can refocus our efforts on those we are here to serve: our customers," he said.

Michigan leads U.S. manufacturing plunge

DETROIT, Oct. 10 (UPI) -- The plight of the U.S. manufacturing sector is sharply visible in Michigan where unemployment is the highest in the nation at 9 percent, statistics show.

The state has lost 400,000 manufacturing jobs in the past eight years, The Washington Post reported Friday.

Outsourcing and the current financial meltdown have hit the state hard twice, Gov. Jennifer Granholm said.

"It's devastating. Companies . . . that are already slammed by globalization are being slammed by the credit crunch," Granholm said.

Over the past year, domestic automobile sales have fallen 11.5 percent, the U.S. Census Bureau News reported Thursday.

In Michigan, the industry has seen 47 percent of its jobs evaporate since 2000, compared with 27 percent of its other manufacturing jobs, the Post said.

In return, stocks at General Motors have plunged to $4.76 per share, their lowest mark in nearly 50 years. GM shares fell 31 percent Thursday, while Ford Motor Co. shares dropped 21 percent to $4.08.

Canada pumps $25B into mortgages

OTTAWA, Oct. 10 (UPI) -- Canada will put $25 billion cash into mortgage-backed securities to shore up banks and lenders, Finance Minister Jim Flaherty announced Friday.

"This is going to make loans and mortgages more available and more affordable for ordinary Canadians and businesses," Flaherty said at an Ottawa news conference, The Canadian Broadcasting Corp., reported.

Flaherty said the problem the country's financial institutions face is not solvency, as in the United States, but the availability of credit.

In the second quarter of 2008, 4.5 percent of U.S. mortgages were more than 90 days in arrears while in Canada the measure was 0.3 percent, the CBC said.

"It is important to underline that Canada's banks and other financial institutions are sound, well-capitalized and less leveraged than their international peers," Flaherty said.

The minister was asked how many Canadian banks were at risk of failure, and he answered "None," the Globe and Mail reported.