Market plunges most after presidential vote
NEW YORK — The stock market posted its biggest plunge after a presidential election Wednesday as reports on jobs and service industries stoked concern the economy will worsen.
Citigroup Inc. tumbled 14 percent and Bank of America Corp. lost 11 percent as the Standard & Poor’s 500 index and Dow Jones industrial average sank more than 5 percent. Nucor Corp., the largest U.S.-based steel producer, slid 10 percent after bigger rival ArcelorMittal doubled production cuts amid slowing demand. Boeing Co. lost 6.9 percent after UBS AG forecast a 3 percent drop in global air traffic next year.
"We had an election; that doesn’t mean the problems go away," said Kevin Rendino, a Plainsboro, N.J.-based money manager at BlackRock Inc. who oversees $10 billion.
The S&P 500 tumbled 5.3 percent to 952.77, erasing Tuesday’s 4.1 percent rally. The Dow retreated 5.1 percent to 9,139.27. The Nasdaq composite index fell 98.48 to 1,681.64.
The slide halted an 18 percent rebound from the S&P 500’s five-year low on Oct. 27. The benchmark for U.S. equities has lost more than 35 percent this year.
A report by ADP Employer Services showed companies cut 157,000 jobs in October, the most since November 2002.
Citigroup lost $2.05 to $12.63, and Bank of America plunged $2.78 to $21.75. The S&P 500 financials index sank 8.8 percent.
Nucor sank $4.16 to $35.50.
Boeing fell $3.67 to $49.55. Its share price, which rose 28 percent from Oct. 10 through Tuesday, "is at least six to nine months from bottoming and beginning to mover higher again," David E. Strauss, a New York-based analyst at UBS, wrote.
Textron Inc. lost $1.71, or 9.2 percent, to $16.93. The world’s biggest business-jet maker reduced the number of Citation jets it plans to deliver next year default payday loan.
General Growth Properties Inc. tumbled almost 50 percent to $2.25 for the biggest drop in the S&P 500.
MBIA Inc. and Ambac Financial Group Inc. slumped after the bond insurers posted wider losses than analysts estimated. MBI fell 22 percent to $8.16. Ambac fell 41 percent to $2.01. Slumping credit markets forced the companies to increase reserves for claims.
Pioneer Natural Resources lost 15 percent to $24.79. The oil and natural-gas producer in North America and Africa reported third-quarter earnings that missed analyst estimates and said it will cut drilling activity.
Sara Lee Corp. slid 14 percent to $10.20. The maker of frozen cakes and Jimmy Dean sausages said full-year profit will be less than previously estimated.
Marsh & McLennan Cos. fell 12 percent to $26.06. The world’s second-biggest insurance broker said profit dropped 78 percent in the third quarter amid the slowing economy and price declines for commercial coverage and reinsurance.
Medco Health Solutions Inc. climbed 9.1 percent to $41.47 for the biggest of only 13 advances in the S&P 500. A surge in use of generic and mail-order prescription drugs fueled a 38 percent increase in third-quarter profit at the largest U.S. drug benefits manager.
Molson Coors Brewing Co. gained 8.3 percent to $41.78. The third-largest U.S. beer maker reported market-share gains in Canada and the U.K.
Chesapeake Energy Corp. climbed 8.2 percent to $24.83 on speculation it will be acquired by BP PLC.
General Motors Corp. slipped 16 cents, or 2.8 percent, to $5.56.