Posted on 11/05/2008 1:17:37 PM PST by TenthAmendmentChampion
NEW YORK (Reuters) - Stocks fell on Wednesday as worries about the weakening global economy returned to center stage just a day after the historic presidential election.
President-elect Barack Obama was immediately faced with gloomy economic news, including reports showing deep cuts in employment by private employers, possibly foreshadowing weakness in the government's employment report on Friday. Other data showed companies planned layoffs at the highest level in nearly five years.
Boeing Co was the biggest drag on the Dow, falling 7 percent, after more delays for its key 787 Dreamliner.
The concern over the depth and length of a slowdown underscored the massive task now facing Obama as he tries to lead the United States and the world out of its worst financial crisis since the 1930s.
"I think it's a bit of back to basics," said David Bianco, chief U.S. equity strategist at UBS in New York.
"Let's continue to follow the economy, what's going on with commodity prices, what's going on with interest rates and credit availability."
The Dow Jones industrial average fell 265.63 points, or 2.76 percent, to 9,359.65. The Standard & Poor's 500 Index lost 28.28 points, or 2.81 percent, to 977.47. The Nasdaq Composite Index gave up 52.56 points, or 2.95 percent, at 1,727.56.
The day's declines came on the heels of Tuesday's more than 3 percent rally, the biggest Election Day advance ever. But stocks remain at multi-year lows after being battered by worries over the economic picture, fallout from the credit crunch and the effect of corporate profits.
United Technologies Corp gave up 4 percent to $54.98 after the diversified manufacturer said it stood by its 2008 profit forecast, though the strengthening dollar could put results near the low end of the range.
Boeing was down 7.1 percent at $49.44 the day after it said the first flight of its Dreamliner would be postponed until next year, rather than the target of the end of this year due to the recent machinists' strike.
Exxon Mobil gave up 2.7 percent at $75.44 as the price of oil slid more than $4 to $65.77 a barrel after a government report showed demand is slowing in the United States, the world's top energy consumer. An S&P index of energy shares fell more than 3 percent.
Steelmakers Nucor Corp and U.S. Steel Corp fell after ArcelorMittal, the world's largest steelmaker, forecast a weaker fourth quarter, slashed output and froze growth plans.
Nucor was down 4.9 percent at $37.70, while U.S. Steel tumbled 4.4 percent to $39.35.
A report from ADP Employer Services said showed private employers made their deepest job cuts in six years last month and companies' planned layoffs surged to their highest in nearly five years. The Institute for Supply Management said the service sector contracted sharply as the worst financial crisis in 80 years hammered the world's largest economy.
On the Nasdaq, Cisco Systems was down 3.1 percent at $17.76 ahead of quarterly results expected after the bell.
This article is a Reuters wire service story posted at KFYI radio station. Does the copy need to be excerpted? Just a friendly FYI (not KFYI!).
Thanks!
I’m going to wait until it gets to 500 before I get out.
“....historic presidential election.”
#######
Uvula exposing yawn.
Historic. Historic. Historic.
More than a bit overused by the drama queens in the press.
I had an historic hamburger for lunch today, will have an historic scotch on the rocks tonight and smoke an historic cigar this weekend.
The MSM says it was the economy...they would never admit to the public that the markets were reacting to Obama’s election.
They are already couching their arguments to cushion Obama.
Any successes will be his alone, or “aided” by the Democrats. Any difficulties or failures will be pinned on Bush.
And apparently, people believe the MSM.
“The concern over the depth and length of a slowdown underscored the massive task now facing Obama as he tries to lead the United States and the world out of its worst financial crisis since the 1930s.”
Good luck with that, Barry.
Earlier they claimed it was people “cashing on [the good news of] Obama’s win.”
Can you believe these people?
I remember when the markets rallied after Reagan's landslide.
"despite 0bama's win, stocks tumble"
No, you dumbasses - it's BECAUSE of 0bama's win.
Monty Python comes to mind.
Now that OBAMA is clearly responsible, “’tis but a scratch”
Obama is already being dimissed by the rest of the world.
The rest of the world is treaty obama as Patsy in Chief.
I am going to CPAC this year and considering running in 2010 for local office here in CA.
Enough of the Cheney, Hagel, Bush, McCain, Gramm, Schwartenegger model of the Neo-Con, open borders RINO Republican party.
I like Ron Paul and I like Rush Limbaugh. We need strict conservative values to fight the Left. The Left is wrong on every issue.
I canceled two things today: one was a gym membership,which I regard as a sort of luxury item, and the other was an e-commerce website that I had gotten last month and planned to launch next month. I don’t think the economic future is going to be good enough to make the website work for me, and even if I made any money on the website, the government would take it all away.
As for the gym, I am seriously looking through all my expenses to cut them because I think life is going to be rough under Obama. I’m also going to drop my cable.
It’s one of the the oldest adages on Wall Street:
“Buy the rumor, sell the news”
I’m not going to lose any sleep over it.
Is there a “Ecconomics for Harvard Dummies”?
Our best ecconomist ever was president number 40.
By this time next year Obama will be Commander in Grief.
Not to worry. Obama will go to Wall Street, give a mesmerizing speech (greek pillars at his back), and everything will be well. [/sarc]
We just cancelled Cable...no news or tv entertainment for me. Every commercial, tv show, etc etc is going to be Hussein all the time. I’ll read a good book or watch some good DVDs....cable can do without me
Did I hear Joe Biden say it’s your patriotic duty to ride the market to the bottom?....NAH!
“Every commercial, tv show, etc etc is going to be Hussein all the time....”
“Like stink on poop”......
“Earlier they claimed it was people “cashing on [the good news of] Obama’s win.”
Can you believe these people?”
My stupid sister said, “well the market has been going up and down anyway. Right....
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