1987 Economy & Business Events — Verified Historical Highlights
1987 Economy & Business Events — Verified Historical Highlights | TakeMeBack.to
- 08 Jan Dow Jones Industrial Average surpasses 2,000 points for the first time: On January 8, 1987, the Dow Jones Industrial Average closed at 2,002.25, marking its first time above the 2,000-point threshold. This milestone was achieved 14 years after the index first surpassed 1,000 points in 1972. source: cnbc.com
- 31 Jan British Airways privatized in 1987: British Airways was privatized on January 31, 1987, marking a significant shift in the airline industry in the UK. The privatization was part of a broader trend during the 1980s under Prime Minister Margaret Thatcher, aimed at reducing state ownership in various sectors. This move allowed British Airways to operate more competitively in the global market. source: bbc.com
- 01 Feb Deere and Company labor strike resolution: On February 1, 1987, United Auto Workers (UAW) members ratified a new 20-month contract with Deere & Company, ending a 163-day strike—the longest in the company's history. The agreement provided job security for 90% of employees, health and life insurance, retirement pensions, profit sharing, and maintained cost-of-living adjustments. However, it did not include changes to general wage rates. source: csmonitor.com
- 05 Feb Dow Jones Industrial Average closes above 2,200 for the first time: On February 5, 1987, the Dow Jones Industrial Average closed at 2,201.49, surpassing the 2,200 mark for the first time. This milestone was achieved amid heavy trading, with the New York Stock Exchange recording a volume of 256.66 million shares, the second-largest total at that time. source: washingtonpost.com
- 11 Feb British Airways shares launched on London Stock Exchange: On February 11, 1987, British Airways' shares were launched on the London Stock Exchange, marking the airline's privatization. The initial share price was set at 125 pence, and the offering was oversubscribed by 11 times, reflecting strong public interest. The privatization was part of the UK government's broader program to sell state-owned enterprises to the public. source: upi.com
- 13 Feb Jack Morris awarded record $1.85 million in arbitration: On February 13, 1987, Detroit Tigers pitcher Jack Morris was awarded a one-year contract worth $1.85 million through salary arbitration, setting a new record for the highest arbitration award at that time. source: washingtonpost.com
- 09 Mar Chrysler announces acquisition of American Motors Corporation: On March 9, 1987, Chrysler Corporation announced plans to acquire American Motors Corporation (AMC) for approximately $1.5 billion. The deal included purchasing Renault's 46.1% stake in AMC and all outstanding shares, aiming to strengthen Chrysler's position in the automotive market by acquiring AMC's Jeep brand, assembly plants, and dealer network. source: washingtonpost.com
- 12 Mar Dow Jones Industrial Average Rebalancing: The Dow Jones Industrial Average made significant changes to its index, removing Owens-Illinois Glass and Inco, and adding Coca-Cola and Boeing Company.
- 19 Mar Fred Currey Acquires Greyhound Bus Company: Businessman Fred Currey completed the acquisition of the iconic Greyhound Bus Company, signaling a significant change in the transportation industry's ownership landscape.
- 24 Mar Disney and France sign Euro Disney Resort agreement: On March 24, 1987, The Walt Disney Company and French officials signed an agreement to develop a Disneyland park in Marne-la-Vallée, a suburb of Paris. The project, later known as Euro Disney, was expected to cost $1.6 billion and create thousands of jobs, with the park opening in 1992. The agreement included French government support, such as low-interest loans and infrastructure development. source: sec.gov
- 03 Apr Dow Jones reaches record high on April 3, 1987: On April 3, 1987, the Dow Jones Industrial Average closed at a record 2,390.34, marking its largest one-day point gain at that time. The index surged 69.89 points, or 3.01%, surpassing the previous record gain of 54.14 points set on February 17, 1987. This rally occurred despite earlier concerns over economic factors such as a potential trade war with Japan and a weakening dollar. source: washingtonpost.com
- 12 Apr Texaco files for bankruptcy protection: On April 12, 1987, Texaco Inc. filed for Chapter 11 bankruptcy protection, seeking to reorganize its debts and operations. This decision was influenced by a substantial $10.3 billion judgment awarded to Pennzoil Co. in a legal dispute over Getty Oil Co., which Texaco had acquired. The bankruptcy filing aimed to manage the financial impact of the judgment and facilitate a restructuring plan. source: washingtonpost.com
- 17 Apr Cecil Harmsworth King Dies: Cecil Harmsworth King, the influential Irish-British media proprietor who owned Mirror Group Newspapers, passed away at the age of 86.
- 29 Apr American Can Company rebrands as Primerica Corporation: In 1987, American Can Company, a manufacturer of tin cans, rebranded itself as Primerica Corporation. This change marked a significant shift in the company's focus and operations. source: en.wikipedia.org
- 29 Jun Canada Introduces the Loonie: The Royal Canadian Mint launches the $1 coin, nicknamed the 'Loonie', marking a significant change in Canadian currency design and monetary policy. This coin would become an iconic symbol of Canadian currency.
- 30 Jun Canada introduces the Loonie $1 coin: On June 30, 1987, Canada introduced the Loonie, a $1 coin that features a common goldeneye duck on one side. The coin was part of a move to replace paper currency with coins, aiming to reduce costs and improve durability. The Loonie was followed by the Toonie, a $2 coin, introduced in 1996. source: bankofcanada.ca
- 14 Jul Greyhound Acquires Trailways: Greyhound Bus Company purchased Trailways Bus for $80 million, a significant merger in the transportation industry that reshaped the intercity bus market.
- 25 Jul Docklands Light Railway opened: On July 25, 1987, the Docklands Light Railway (DLR) was officially opened in London, United Kingdom. The DLR is an automated light metro system serving the Docklands area, providing a new mode of transportation and contributing to the development and regeneration of East London. source: london.gov.uk
- 09 Aug South African miners' strike begins over wage demands: On August 9, 1987, approximately 200,000 black miners initiated a strike at 46 gold and coal mines in South Africa, demanding a 30% wage increase. The National Union of Mineworkers (NUM), led by Cyril Ramaphosa, organized the strike to address wage disparities and working conditions. The action marked a significant challenge to the mining industry's authority and highlighted the growing influence of black labor unions in the country. source: washingtonpost.com
- 12 Aug British Royal Mint introduces gold bullion coin: On August 12, 1987, the British Royal Mint began issuing the Britannia 1-ounce 0.9167 fine gold bullion coin. This marked the UK's entry into the gold bullion coin market, offering investors a new avenue for gold investment. The coin features a design of Britannia, the personification of Britain, standing with a trident and shield, symbolizing strength and resilience. source: kpolsson.com
- 25 Aug Dow Jones Industrial Average reaches record high: On August 25, 1987, the Dow Jones Industrial Average (DJIA) closed at a record high of 2,722.42 points, marking the peak of a strong five-year bull market. This milestone was achieved during a period of significant economic growth, with the DJIA rising from 776 points in August 1982 to its peak in August 1987. source: statmuse.com
- 30 Aug South African miners end three-week strike: On August 30, 1987, the National Union of Mineworkers concluded a three-week strike at South Africa's gold and coal mines. The strike, involving over 340,000 miners, was initiated to demand a 30% wage increase. The union accepted a management offer of improved benefits but did not secure the desired wage increase. The strike had significant economic and social impacts, including the dismissal of thousands of miners and several fatalities. source: washingtonpost.com
- 04 Oct Canada–United States Free Trade Agreement reached: On October 4, 1987, Canada and the United States reached an agreement on the Canada–United States Free Trade Agreement (CUSFTA), which was signed by the leaders of both countries on January 2, 1988. The agreement aimed to eliminate tariffs and reduce non-tariff barriers, leading to a substantial increase in cross-border trade over a ten-year period. source: en.wikipedia.org
- 10 Oct Record-Breaking Stock Trading Day: The New York Stock Exchange experienced an unprecedented trading volume, with 338,500,000 shares traded, reflecting significant market activity and economic dynamics of the late 1980s.
- 16 Oct Dow Jones experiences significant drop on October 16, 1987: On October 16, 1987, the Dow Jones Industrial Average (DJIA) declined by 108.35 points, or 4.6%, closing at 2,246.74. This marked the largest single-day point loss at that time, setting the stage for the more severe market downturn on October 19, 1987, known as Black Monday. source: washingtonpost.com
- 19 Oct Black Monday: Global stock market crash on October 19, 1987: On October 19, 1987, known as Black Monday, global stock markets crashed, with the Dow Jones Industrial Average falling by 22.6% in a single day. This event marked one of the largest one-day percentage declines in stock market history, leading to widespread panic and significant financial losses worldwide. The causes included a combination of overvaluation, program trading, and market psychology. source: investopedia.com
- 20 Oct Dow Jones Industrial Average rebounds with 5.8% gain after Black Monday crash: On October 20, 1987, the Dow Jones Industrial Average rose 5.8%, recovering from the previous day's 22.6% decline. The index closed at 1,841.01, with 608 million shares traded, setting a record for the New York Stock Exchange at that time. source: benzinga.com
- 21 Oct Stock market rebounds with significant gains on October 21, 1987: Following the historic 22.6% drop on Black Monday, October 19, 1987, the Dow Jones Industrial Average (DJIA) experienced a substantial recovery on October 21, 1987. The DJIA rose by 186.84 points, marking a 10.15% increase, which was the largest one-day point gain at that time. This rebound was part of a broader market recovery, with 1,768 of the NYSE's 1,978 listings advancing higher, compared to just 509 the previous day. source: begintoinvest.com
- 26 Oct Black Monday stock market decline occurred on October 26, 1987: On October 26, 1987, known as Black Monday, stock markets around the world crashed, with the Dow Jones Industrial Average falling by 22.6% in a single day. This event marked the largest one-day percentage drop in stock market history, leading to widespread panic and significant financial repercussions globally. The causes included a combination of factors such as program trading, overvaluation, and market psychology. source: sec.gov
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