Errr, ummm, something like that:
Hopes for a post-election Wall Street bounce were dashed on Wednesday as investors took profits and dealt with another round of bleak economic news. Stocks erased all of their gains from Election Day.
The selling began early after a report showed that the nation’s service sector contracted in October, falling at the fastest pace since records began in 1997.
An index by the private Institute for Supply Management, which measures the service industries that cover almost 90 percent of the economy, dropped to 44.4, from 50.2 in September, on a scale where readings below 50 indicate contraction, the group reported Wednesday.
The report, closely watched by market participants, spurred a sell-off in the Dow Jones industrial average, which was down 5.1 percent or 494 points at the close. The broader Standard & Poor’s 500-stock index declined 5.3 percent, and the technology heavy Nasdaq fell 5.5 percent.
“I think anytime you do see a rally like we’ve been having, there will always be a little bit of pullback when people wake up and see things like today’s headline number on nonmanufacturing activity, which was the lowest of all time,” Michael Feroli, an economist at JPMorgan Chase, said. “If there’s data out, there’s going to be bad news out. That will tend to keep market enthusiasm a little bit contained.”
Sure you still want the job, Barack ?
