October 15, 2008
Stocks slid on Wednesday as investors worried that efforts to ease the credit crisis would not avert a recession, overshadowing solid profits from Coca-Cola Co (KO.N) and Intel Corp (INTC.O).
- A d v e r t i s e m e n t
Investors’ mood soured when a government report showed that sales at U.S. retailers last month slid by the biggest monthly drop in more than three years. Consumer spending accounts for two-thirds of U.S. economic activity.
Investors sold shares of economic bellwethers, including Caterpillar Inc (CAT.N) , which fell 8 percent. Energy companies were another casualty as oil prices slid. Chevron (CVX.N) fell more than 6 percent.
U.S. crude for November delivery fell about 4 percent to $75.61 a barrel on the view that a recession would hurt energy demand.
“I think people are realizing there are interesting tools being put in place to deal with the credit crisis, but there’s going to be a lag time to get them to work,” said Arthur Hogan, chief market analyst at Jefferies & Co in Boston.
The Dow Jones industrial average (.DJI) slid 347.03 points, or 3.73 percent, to 8,963.96. The Standard & Poor’s 500 Index (.SPX) tumbled 43.99 points, or 4.41 percent, to 954.02. The Nasdaq Composite Index (.IXIC) dropped 53.96 points, or 3.03 percent, to 1,725.05.
The Emergency Election Sale is now live! Get 30% to 60% off our most popular products today!