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Stocks Fall

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Author Topic: Stocks Fall  (Read 210 times)
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« on: November 05, 2008, 12:30:48 pm »
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Stocks fall as investors ponder Obama presidency
By SARA LEPRO, AP Business Writer – 15 mins ago AP –  …

NEW YORK – A case of post-election nerves sent stocks lower Wednesday as investors began questioning what impact a Barack Obama presidency will have on business and the overall economy. The Dow Jones industrials fell more than 300 points and the major indexes all fell more than 3 percent.

Stocks fell initially as investors cashed in gains after a six-day run that lifted the Standard & Poor's 500 index more than 18 percent. The selling picked up momentum as the market began to ponder what an Obama administration might do.

Obama will inherit an enormous budget deficit when he is sworn in Jan. 20. Analysts said they the market is already growing anxious about who Obama selects as the next Treasury Secretary, as well as who he picks for other Cabinet positions.

"A lot of the policy going forward is going to have an effect on the various sectors of the market," said Joe Keetle, senior wealth manager for Dawson Wealth Management.

Obama's victory means that industries such as oil and gas producers, utilities and pharmaceuticals may face greater regulation and even taxes, while labor unions and automakers are expected to benefit.

In addition, banks, insurance companies, hedge funds and the rest of the financial sector will almost certainly face attempts at a regulatory overhaul by the Democratic Congress next year.

Analysts said the market was also growing uneasy in advance of the Labor Department's October employment report, to be issued on Friday. Economists on average expect a 200,000 drop in payrolls, according to Thomson/IFR. Employers have been slashing jobs after a freeze-up in the credit markets crippled many companies' ability to get financing.

The market showed no reaction to the release of the Institute for Supply Management's services sector index, which fell to 44.4 in October from 50.2 in September. That's a steeper drop than the market expected, but analysts said investors have largely factored in negative economic news for the time being.

In midday trading, the Dow Jones industrial average fell 312.06, or 3.24 percent, to 9,313.22.

The S&P 500 index fell 33.49, or 3.33 percent, to 972.26. Through the six sessions that ended Tuesday, the index, the one most closely watched by market professionals, rose 18.3 percent.

The Nasdaq composite index fell 63.54, or 3.57 percent, to 1,716.58, while the Russell 2000 index of smaller companies fell 18.56, or 3.40 percent, to 527.41.
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Damion Hellstrom
« Reply #1 on: November 05, 2008, 03:52:15 pm »
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They know he's not going to be good for business.  As a result, the stocks fell.
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Swing Voter
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« Reply #2 on: November 06, 2008, 12:04:46 am »
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The same crooks run the exchange.

No government can weed them out, unfortunately.

Maybe people are just cashing in their stocks which caused the fall....
I mean, isn't Christmas and America's thanks giving coming up....people need cash to put those events on....just a hunch...

or people are dropping the prices to encourage buyers...

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