U.S. Stocks Drop, DJI to Worst Start Since 1983

U.S. stocks tumbled, led by banks and computer companies, after the biggest decline in manufacturing in five years sent the Dow Jones Industrial Average to its worst start since 1983.

The Standard & Poor's 500 Index lost 21.20, or 1.4 percent, to 1,447.16, the most to start a year since it fell 2.8 percent on Jan. 2, 2001. The Dow average slipped 220.86 points to 13,043.96. The Nasdaq Composite Index decreased 42.65, or 1.6 percent, to 2,609.63. More than three stocks fell for every one that rose on the New York Stock Exchange.

The ISM index dropped to 47.7, the lowest since April 2003 and the first reading below 50 since last January. The report, combined with a rise in the price of oil to a record $100 a barrel, spurred concern that a slowdown in spending will halt the five-year economic expansion.

The Russell 2000 Index, a benchmark for companies with a median market value of $578 million, dropped 1.6 percent to 753.55. The Dow Jones Wilshire 5000 Index, the broadest measure of U.S. shares, fell 1.4 percent to 14,613.63. Based on its decline, the value of stocks decreased by $257.4 billion.

U.S. Stocks Drop, DJI to Worst Start Since 1983

TradingEconomics.com, Bloomberg
1/2/2008 4:06:44 PM