Cisco, the world’s largest maker of networking equipment, lost 2.1 percent. News Corp. sank 12 percent after the media company controlled by Rupert Murdoch cited shrinking ad sales at its Fox stations and newspapers. Unemployment claims climbed to the highest in 25 years as companies coped with a worsening economy by reducing labor, according to a government report.
The Standard & Poor’s 500 Index extended yesterday’s 5.3 percent decline as earnings from Blackstone Group LP trailed forecasts and Target Corp. said November sales may decrease 9 percent.
The S&P 500 dropped 2.21 points, or 0.2 percent, to 950.56 as of 9:38 a.m. in New York. The Dow Jones Industrial Average retreated 1.83 to 9,137.44. The Nasdaq Composite Index lost 7.36, or 0.4 percent, to 1,674.28.
U.K. stocks fell for a second day, led by energy producers, as concern deepened the global economic crisis will further dampen corporate growth. The FTSE 100 was trading 2.2 per cent lower at 4,445.98 after the news broke at midday, after the benchmark index was 4 per cent weaker in morning trade.
German stocks dropped for a second day as disappointing earnings reports deepened concern the economic slowdown will hurt consumer companies. The benchmark DAX Index declined 228.8, or 4.4 percent, to 4,938.07 as of 12:03 p.m. in Frankfurt.
Japanese stocks dropped for the first time in three days as worse-than-expected U.S. jobs and services data caused a rally sparked by Barack Obama's presidential election victory to fizzle out. The Nikkei 225 Stock Average slumped 622.10, or 6.5 percent, to close at 8,899.14 in Tokyo.
Australian S&P/ASX 200 Index slumped 180.90 points, or 4.2 percent, to 4,155.70 at 3 p.m. in Sydney, the most in two weeks.
China's stocks fell, led by coal producers and shipping companies, on speculation prices for the fuel will extend declines and after international lines cut jobs and services. The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, declined 41.64, or 2.5 percent, to 1,649.78 at the close.
Indian stocks dropped for a second day, led by banks, on concern the profitability of lenders may decline after they cut interest rates for customers more than depositors and after inflation accelerated faster than expected. The benchmark Bombay Stock Exchange Sensitive Index, or Sensex, lost 385.79, or 3.8 percent, to 9,734.22 at the 3:30 p.m. local time close of trading.