Thursday, November 06, 2008 8:28:38 PM
Stocks tumble, lose 10 percent in 2-day rout after election
Stocks suffered a second straight round of steep losses amid new signs that bellwether companies and their customers are struggling. Jittery investors also placed early bets that jobs data due out Friday morning will be bleak.
The Dow Jones Industrial Average finished down 443.48 points on Thursday, off 4.9%, at 8695.79, hurt by declines in all 30 of its components. The Dow has fallen 929.49 points, or 9.66%, over the past two days, the biggest percentage drop since the crash of October 1987.
The weakest of the blue chips by far was General Motors, off 13.7%, after the president of its North America unit said that the next 100 days will be vital to the survival of the struggling U.S. auto industry.
CHICAGO (Reuters) - Barack Obama will meet his economic team on Friday and hold his first news conference since becoming U.S. president-elect as the country awaited signs of how he might tackle the economic crisis.
Obama, who stands to inherit the worst financial crisis since the Great Depression, faced pressure to announce his picks for key economic jobs, including Treasury secretary, though there were no indications of when he might do so.
On Wall Street, stocks closed sharply lower for a second day. The Dow Jones industrial average tumbled 443.48 points, or 4.85 percent, after plummeting almost 500 points or about 5 percent on Wednesday -- the biggest fall ever on the day after a presidential election.
Though the timing of the Treasury secretary announcement was uncertain, names being considered for the job included Timothy Geithner, president of the Federal Reserve Bank of New York; former Treasury Secretary Lawrence Summers; and former Federal Reserve Board Chairman Paul Volcker.
Summers and Volcker were on the 17-member transition economic advisory board that will meet with Obama on Friday, a statement from the transition office said. Others who will take part in the meeting include Berkshire Hathaway Chairman Warren Buffett and Roger Ferguson, former vice chairman of the Federal Reserve board of governors.
Obama made his first key administration appointment by naming U.S. Rep. Rahm Emanuel of Illinois, a brash veteran of President Bill Clinton's White House known for his take-no-prisoners style, as his chief of staff.
"I announce this appointment first because the chief of staff is central to the ability of a president and administration to accomplish an agenda," Obama said in a statement. "And no one I know is better at getting things done than Rahm Emanuel."
The choice was quickly criticized by Republicans who accused Obama of reneging on his campaign promise that he would bring change to Washington and reach across the aisle to bridge divides between the parties.
"This is an ironic choice for a president-elect who has promised to change Washington, make politics more civil, and govern from the center," House Republican Leader John Boehner of Ohio said.
But not all Republicans viewed the appointment harshly. South Carolina Sen. Lindsey Graham, a close ally of Republican White House candidate John McCain, praised the choice.
"This is a wise choice by President-elect Obama," Graham said. "Rahm knows Capitol Hill and has great political skills. He can be a tough partisan but also understands the need to work together. He is well-suited for the position."
http://www.reuters.com/article/politicsNews/idUSTRE4A36V020081107
Stocks suffered a second straight round of steep losses amid new signs that bellwether companies and their customers are struggling. Jittery investors also placed early bets that jobs data due out Friday morning will be bleak.
The Dow Jones Industrial Average finished down 443.48 points on Thursday, off 4.9%, at 8695.79, hurt by declines in all 30 of its components. The Dow has fallen 929.49 points, or 9.66%, over the past two days, the biggest percentage drop since the crash of October 1987.
The weakest of the blue chips by far was General Motors, off 13.7%, after the president of its North America unit said that the next 100 days will be vital to the survival of the struggling U.S. auto industry.
CHICAGO (Reuters) - Barack Obama will meet his economic team on Friday and hold his first news conference since becoming U.S. president-elect as the country awaited signs of how he might tackle the economic crisis.
Obama, who stands to inherit the worst financial crisis since the Great Depression, faced pressure to announce his picks for key economic jobs, including Treasury secretary, though there were no indications of when he might do so.
On Wall Street, stocks closed sharply lower for a second day. The Dow Jones industrial average tumbled 443.48 points, or 4.85 percent, after plummeting almost 500 points or about 5 percent on Wednesday -- the biggest fall ever on the day after a presidential election.
Though the timing of the Treasury secretary announcement was uncertain, names being considered for the job included Timothy Geithner, president of the Federal Reserve Bank of New York; former Treasury Secretary Lawrence Summers; and former Federal Reserve Board Chairman Paul Volcker.
Summers and Volcker were on the 17-member transition economic advisory board that will meet with Obama on Friday, a statement from the transition office said. Others who will take part in the meeting include Berkshire Hathaway Chairman Warren Buffett and Roger Ferguson, former vice chairman of the Federal Reserve board of governors.
Obama made his first key administration appointment by naming U.S. Rep. Rahm Emanuel of Illinois, a brash veteran of President Bill Clinton's White House known for his take-no-prisoners style, as his chief of staff.
"I announce this appointment first because the chief of staff is central to the ability of a president and administration to accomplish an agenda," Obama said in a statement. "And no one I know is better at getting things done than Rahm Emanuel."
The choice was quickly criticized by Republicans who accused Obama of reneging on his campaign promise that he would bring change to Washington and reach across the aisle to bridge divides between the parties.
"This is an ironic choice for a president-elect who has promised to change Washington, make politics more civil, and govern from the center," House Republican Leader John Boehner of Ohio said.
But not all Republicans viewed the appointment harshly. South Carolina Sen. Lindsey Graham, a close ally of Republican White House candidate John McCain, praised the choice.
"This is a wise choice by President-elect Obama," Graham said. "Rahm knows Capitol Hill and has great political skills. He can be a tough partisan but also understands the need to work together. He is well-suited for the position."
http://www.reuters.com/article/politicsNews/idUSTRE4A36V020081107
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