U.S. Stocks Fall


U.S. stocks sank and the Standard & Poor's 500 Index dropped to the lowest level since April 2003 on concern a worsening global economic slump will damp corporate profits.

Exxon Mobil Corp. tumbled 9.7 percent and Freeport-McMoRan Copper & Gold Inc. plunged 18 percent as crude, copper and gold fell. Coventry Health Care Inc. tumbled 51 percent as the health insurer's earnings were hurt by bad investments and rising medical costs. SanDisk Corp. sank 32 percent after Samsung Electronics Co. abandoned its takeover bid. European and Asian shares fell, while an index of emerging market stocks slumped 8.4 percent on concern Argentina may default on its debt.

The Standard & Poor's 500 Index lost 58.13 points, or 6.1 percent, to 896.92. The Dow Jones Industrial Average plunged 514.45, or 5.7 percent, to 8,519.21. The Nasdaq Composite Index lost 80.93, or 4.8 percent, 1,615.75. About 20 stocks dropped for each that rose on the New York Stock Exchange.

Canadian stocks fell a second day, led by energy producers including EnCana Corp., after oil prices slid to a 16-month low on signs that a global economic slowdown is crimping fuel consumption. The Standard & Poor's/TSX Composite Index fell 4.95 percent to 9,311.08. Canada's main stock benchmark has slid 19 percent this month, extending a 15 percent drop in September. 

Brazilian stocks fell the most in a week on concern the global economic slump will reduce demand for commodities and Argentina's planned seizure of pension funds may lead to increased selling of emerging-market assets. The Bovespa index fell 9.6 percent to 35,296.

European equities fell sharply on Wednesday, as the spectre of global recession dragged energy and industrial stocks lower.

U.K. stocks dropped for a second day after the Bank of England Governor Mervyn King said the country faces a recession and oil and metals prices fell. The FTSE 100 Index slipped 188.84, or 4.46 percent.

German stocks declined for a second day as investor concern deepened that a global economic slowdown may curb corporate earnings. The benchmark DAX Index declined 213.34 or 4.46 percent.

Japan stocks plunged, driving the Topix index down more than 7 percent for the fourth time in two weeks, on concern the slowing global economy will weigh on profits and as the tumbling euro cut the value of European sales. The Nikkei 225 Stock Average dropped 631.56, or 6.8 percent, to close at 8,674.69 in Tokyo, its first retreat since Oct. 16.

Australian S&P/ASX 200 Index fell 146.40 points, or 3.4 percent, to 4,156.10 at the close in Sydney, after a two-day, 8.4 percent advance.

Indian stocks fell, with the benchmark index declining for the first day in three, as weak corporate earnings heightened concern the economy will slow. The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 513.49, or 4.8 percent, to 10,169.90.

China's benchmark stock index declined, led by smelters and utilities, as corporate earnings fell amid a slowing economy. The CSI 300 Index, which tracks yuan-denominated stocks traded in Shanghai and Shenzhen, declined 48.08, or 2.6 percent, to 1,833.32 at the close, extending this year's drop to 66 percent.

Russian stocks declined, led by oil producers OAO Lukoil and OAO Rosneft, after crude prices fell below $70 a barrel. The Micex Index of 30 stocks dropped 37.6, or 5.76 percent, heading for the first decline in three days.


TradingEconomics.com, Bloomberg.com
10/22/2008 1:20:50 PM