U.S. stocks dropped after a report showing 157,000 job losses and falling production at the world’s largest steelmaker spurred concern the economy will worsen even as President-elect Barack Obama takes steps to stimulate growth.
Nucor Corp., the largest U.S.-based steel producer, fell 5.9 percent after ArcelorMittal doubled production cuts amid slowing demand. Transocean Inc., the world’s largest offshore oil driller, slid as much as 4.6 percent on profit that trailed the average analyst estimate. The market’s declines came a day after the biggest presidential Election Day gain in 24 years.
“I don’t know anyone who can say with any sort of real conviction that we’re in a bull market next year,” said Pat Becker Jr., chief investment officer at Becker Capital Management Inc. in Portland, Oregon, which oversees about $1.7 billion. “Bear markets can last years.”
The Standard & Poor’s 500 Index dropped 9.55 points, or 1 percent, to 996.2 at 10:40 a.m. in New York as a report showing a bigger-than-forecast contraction in service industries also weighed on stocks. The Dow Jones Industrial Average retreated 100.67, or 1.1 percent, to 9,524.61 and the Nasdaq Composite Index dropped 21.07, or 1.2 percent, to 1,759.05. More than three stocks fell for every two that rose on the New York Stock Exchange.
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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 32 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 report by ADP Employer Services showed more job cuts than economists had projected and precedes the Labor Department’s Nov. 11 release of employment data for October, expected to show U.S. payrolls shrank for a 10th straight month.
November 5th, 2008 at 1:13 pm
We shall NOT have world government. Whether you like it or not. Whether by you globalists listening to reason, or by kicking your blue blood asses back to your perverted secret orgy clubhouse in the woods. Who meets in secret in the woods with no women around? And sacrifices a baby doll to a 40 foot owl? You feds who are reading all these posts because they pay you to spy on us are selling your soul. YOUR SELLING YOUR SOUL MAN!! They want to wipe out two thirds of the humanity on this Earth man. That means your kids too. Do the research Spooky, damn, why be a part of a bunch of pervos who meet in the woods. Man up dude. To hell with that govt. pension, it aint worth your soul man. Your wife will understand when you explain it to her. She would be ashamed of you if she knew the truth. We ALL will stand before the Supreme Personality of Godhead sooner or later. There will be NO SECRETS then g-man. Its not too late to do the right thing.