Truemors
OPINION
Apparently the capital markets are not so enthused by the prospects of an Obama Presidency. That is OK though. When the companies that Americans work for need to raise capital to finance payroll or operations MAIN STREET will finance them I am sure. LOL!
U.S. Stocks Tumble on Economic Concern; Nucor, Boeing Retreat
By Elizabeth Stanton
Nov. 5 (Bloomberg) -- The stock market posted its biggest plunge following a presidential election as reports on jobs and service industries stoked concern the economy will worsen even as President-elect Barack Obama tries to stimulate growth.
Citigroup Inc. tumbled 14 percent and Bank of America Corp. lost 11 percent as the Standard & Poor's 500 Index and Dow Jones Industrial Average sank more than 5 percent. Nucor Corp., the largest U.S.-based steel producer, slid 10 percent after bigger rival ArcelorMittal doubled production cuts amid slowing demand. Boeing Co., the world's second-largest commercial planemaker, lost 6.9 percent after UBS AG forecast a 3 percent drop in global air traffic next year.
``We had an election yesterday; that doesn't mean the problems go away,'' said Kevin Rendino, a Plainsboro, New Jersey-based money manager at BlackRock Inc. who oversees $10 billion. ``We still have an economic slowdown.''
The S&P 500 tumbled 52.96 points, or 5.3 percent, to 952.79, erasing yesterday's 4.1 percent rally. The Dow retreated 486.01, or 5.1 percent, to 9,139.27 and the Nasdaq Composite Index dropped 98.48, or 5.5 percent, to 1,681.64. Twelve stocks fell for each that rose on the New York Stock Exchange.
Rebound Halted
The retreat halted an 18 percent rebound from the S&P 500's five-year low on Oct. 27. The benchmark for U.S. equities has lost more than 35 percent this year, the steepest annual plunge since 1937, and Obama will have to contend with an economy pummeled by the fastest contraction in manufacturing in 26 years and the lowest consumer confidence.
The market's decline came a day after the biggest presidential Election Day gain since the NYSE first opened for trading on a voting day in 1984.
The report by ADP Employer Services showed companies cut 157,000 jobs in October, the most since November 2002 when the U.S. was emerging from a recession.
To contact the reporters on this story: To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net
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