U.S. Stocks Tumble in Market's Worst Two-Day Slump Since 1987

[Chris_]

U.S. Stocks Tumble in Market's Worst Two-Day Slump Since 1987

Nov. 6 (Bloomberg) -- U.S. stocks slid, sending the market to its biggest two-day slump since 1987, after jobless claims jumped and the shrinking economy crushed earnings at companies from Blackstone Group Inc. to News Corp.

Blackstone, the largest private-equity firm, fell 12 percent after posting the biggest quarterly loss in its 18 months as a public company. News Corp. sank 16 percent after the media company controlled by Rupert Murdoch said ad sales decreased. Chevron Corp. fell 6.4 percent as oil tumbled to a 19-month low, while an unexpected decrease in chain-store sales dragged down 25 of 27 shares in the S&P 500 Retailing Index.

``We're a long way from the end of the economic challenges,'' said Mike Morcos, who helps manage $1 billion at Old Second Wealth Management in Aurora, Illinois. ``Earnings next year are going to be significantly lower and estimates are going to continue to come down.''

The Standard & Poor's 500 Index fell 5 percent to 904.88, extending its two-day loss to 10 percent. The Dow Jones Industrial Average retreated 443.48 points, or 4.9 percent, to 8,695.79. The Russell 2000 Index of small U.S. companies declined 3.7 percent to 495.84. The MSCI World Index of 23 developed markets lost 5.9 percent to 925.09.

The two-day tumble following Election Day wiped out more than half of the market's rebound from a five-year low on Oct. 27. Both the S&P 500 and Dow average posted their biggest two-day slides since plunging more than 24 percent as rising borrowing costs helped spur the market crash of October 1987.

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We're two days closer to the obamanation in the White House.  God help us all.
 

[lastparker]

Welcome to Obamanomics 101.

[SaintLouieWoman]

I wasn't one of the "smart" ones who totally dumped the majority of stocks in the 401k and elsewhere. I'm thinking it might be better to watch for the occasional up days and cash in as I think things will be getting much worse under O.

The Annointed One had said some time ago that Americans should learn to live on less. I guess everyone will have to do that, while he lives it up in the White House. Michele will probably enjoy all the caviar and lobster her little heart desires. 

[Lacarnut]

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We're two days closer to the obamanation in the White House.  God help us all.
 

The black dress with flames that Michelle wore kinda sums up the hell we are in for. With top economic advisers from Fannie, Freddie, R. Rubin plus 2 old senile farts like Volker & Buffet, we are in deep shit.

[Chris_]

Welcome to Obamanomics 101.

5K in 70 days.

You heard it here first.