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U.S. Stocks Tumble on Recession Concern, Merrill Lynch Loss


Wretched Excess:
U.S. Stocks Tumble on Recession Concern, Merrill Lynch Loss

 Jan. 17 (Bloomberg) -- Growing conviction that the U.S. is in a recession sent stocks plunging in their worst three-day decline since 2002.

Exxon Mobil Corp., General Electric Co. and Bank of America Corp. led the drop after the Federal Reserve said manufacturing in the Philadelphia region slid to a six-year low and Merrill Lynch & Co. posted a loss double analysts' estimates. Ambac Financial Group Inc. and MBIA Inc., the two biggest bond insurers, retreated on concern they will lose their AAA credit rating. All 10 industry groups in the Standard & Poor's 500 Index decreased.

The S&P 500 lost 39.94, or 2.9 percent, to 1,333.26 and is down 9.2 percent this year. The Dow Jones Industrial Average decreased 306.95, or 2.5 percent, to 12,159.21. The Nasdaq Composite Index slid 47.69, or 2 percent, to 2,346.9. More than seven stocks fell for every one that rose on the NYSE.

``The problems seem to be intensifying,'' said John Carey, who helps oversee about $13 billion at Pioneer Investment Management in Boston.

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