Dow Slides After Obama Win

Posted on November 7, 2012

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By JONATHAN CHENG

Investors pulled back sharply following President Barack Obama’s reelection and rising worries about the upcoming fiscal fight in Congress.

The Dow Jones Industrial Average shed 232 points, or 1.8%, to 13014 in Wednesday morning trade. That was more than enough to erase the previous day’s strong advance, and came after volatile movements in the overnight stock futures market.

Traders handle last minute trade orders on the floor of the New York Stock Exchange just before the closing bell on Tuesday.

The Standard & Poor’s 500-stock index lost 25 points, or 1.8%, to 1403 and the Nasdaq Composite declined 53 points, or 1.8%, to 2959.

Leading the declines were energy stocks, as crude-oil futures tumbled and the outlook for coal darkened. Exxon Mobil VZ -2.39% and Chevron XOM -3.87% declined while coal stocks, pegged to rally if Alpha Natural Resources, CVX -2.88% Arch Coal ACI -13.51% and Consol Energy CNX -6.86% . Railroad shares, which rely heavily on coal shipments, were also weak.

Financial stocks were hit hard by investor concerns about the impact of electoral wins by Bank of America BAC -6.06% and J.P. Morgan Chase JPM -5.48% led the Dow laggards. Morgan Stanley MS -6.84% also dropped.

Continue reading: Dow Industrials Slide Toward 13000 – WSJ.com.

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