U.S. Stocks Drop on Industrial Production, Manufacturing Data

By Eric Martin

Oct. 16 (Bloomberg) -- U.S. stocks retreated, adding to the market's worst one-day loss in 21 years, as reports on industrial production and manufacturing spurred concern the economic slump is worsening.

Boeing Co. and General Motors Corp. retreated more than 2.4 percent after industrial production fell by the most in 34 years and a gauge of manufacturing in Philadelphia slumped to the lowest in almost two decades.

The S&P 500 declined 15.35 points, or 1.7 percent, to 892.49 at 10:15 a.m. in New York, the lowest since April 2003. The Dow Jones Industrial Average slid 141.37, or 1.7 percent, to 8,436.54. The Nasdaq Composite Index slipped 19.66 to 1,608.67. Almost two stocks dropped for each that rose on the New York Stock Exchange.


The retreat over the past two days erased all of the 12 percent gain in the S&P 500 on Oct. 13, when the market rallied the most since the 1930s on speculation the government's plan to shore up banks will ease the credit crisis. Efforts to calm financial markets probably won't result in an immediate economic rebound, Federal Reserve Chairman Ben S. Bernanke told the Economic Club of New York yesterday.

The S&P 500 has tumbled 37 percent in 2008 as losses and writedowns from mortgage-related investments at financial firms worldwide topped $646 billion. The measure has retreated 24 percent since Sept. 26.

To contact the reporter on this story: Eric Martin in New York at emartin21@bloomberg.net.