U.S. Stocks Drop


U.S. stocks slumped for a second day, hammered by the biggest drop in retail sales in three years and growing doubt that plans to bail out the nation's banks will keep the economy out of a recession.

Chevron Corp., Caterpillar Inc. and American Express Co. retreated more than 5 percent. Goldman Sachs Group Inc. and Citigroup Inc. lost more than 6 percent after Oppenheimer & Co. analyst Meredith Whitney said she is still ``cautious'' on bank stocks even after the government's plan to spend $250 billion on stakes in financial firms. Benchmark indexes in Europe and Asia fell for the first time in three days.

The Standard & Poor's 500 Index declined 33.22 points, or 3.3 percent, to 964.79 at 9:50 a.m. in New York. The Dow Jones Industrial Average retreated 249.86, or 2.7 percent, to 9,061.13. The Nasdaq Composite Index lost 35.75, or 2 percent, to 1,743.26. About 13 stocks fell for every two that rose on the New York Stock Exchange.

The Canadian stocks slumped. The S&P/TSX Composite Index declined 293.16, or almost 3 percent down, to 9,662.5 at 9:52 a.m. in Toronto.

U.K. stocks declined for the first time in three days, led by energy producers on concern a $2 trillion global push to rescue banks will not be enough to bolster economic growth. The benchmark FTSE 100 slipped 172.94, or 3.94 percent, to 4,221.27 at 2:36 p.m. in London.

German stocks dropped for the first time in three days on speculation $2 trillion in funds to be injected in banks worldwide to rescue the financial system may not avert a recession. The DAX Index retreated 183.06, or 3.5 percent, to 5,015.89 as of 2:36 p.m. in Frankfurt.

Asian stocks declined, a day after the region's benchmark index rallied the most in a decade, as concern earnings will deteriorate overshadowed a $2 trillion global bank rescue.

Japan's Nikkei 225 Stock Average rose 1.1 percent to 9,547.47, erasing an earlier 1.9 percent retreat. The S&P/ASX 200 Index fell 35.20 points, or 0.8 percent, to 4,300.

Indian stocks fell, after the benchmark Sensitive Index posted the biggest two-day jump in three months, on concerns lower demand will crimp earnings. The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 674.28 or 5.87 percent, to 10,809.12.

China's stocks fell for a second day, led by commodity producers, on concern profits will decline as economic growth slows. The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, lost 20.26, or 1.1 percent, to 1,914.36 at the close, with commodity shares accounting for about 50 percent of the decline.

Russian stocks dropped, led by OAO Rosneft and OAO Lukoil, as sinking oil prices hurt the outlook for the economy and investors sold shares to raise cash amid the country's worst financial crisis since 1998. The Micex Index fell 8 percent to 695.24, poised for its biggest decline in four days.


TradingEconomics.com, Bloomberg.com
10/15/2008 7:12:41 AM