Issue link: https://www.epageflip.net/i/92471
8B Daily News – Thursday, November 8, 2012 Furniture Depot 235 So. Main St., Red Bluff 527-1657 SAT. 9:00-5:00 • SUN. 11:00-5:00 MON.-FRI. 9:00-6:00 Wall Street greeted a sec- ond Obama term the way it greeted the first. Investors dumped stocks Wednesday in the sharpest sell-off of the year. With the election only hours behind them, they focused on big prob- lems ahead in Washington and across the Atlantic Ocean. NEW YORK (AP) — Frantic selling recalled the days after Obama's first victory, as the finan- cial crisis raged and stocks spiraled downward. Four years later, Ameri- can voters returned a divid- ed government to power and left investors fretting about a package of tax increases and government spending cuts that could stall the economic recov- ery unless Congress acts to stop it by Jan. 1. warned that unemploy- ment could remain high for years, and cut their fore- casts for economic growth for this year and 2013. The head of the European Cen- tral Bank said not even powerhouse Germany is immune. The Dow Jones indus- In Europe, leaders ''It's a combination of all that, quite honestly,'' Pavlik said. It was the worst day for stocks this year, but not the worst after an election. That distinction belongs to 2008, when Barack Obama was elected at the depths of the financial crisis. The Dow fell 486 points the next day. This time, energy com- panies and bank stocks took some of the biggest losses. Both industries would have faced lighter, less costly regulation if Mitt Romney had won the election. GIANT RECLINER In Celebration of the Giants World Championship SAVE AN EXTRA $ in stock recliner 100 off any Dow loses 313 in post-election sell-off Stocks seen as benefit- ing from Obama's decisive re-election rose. They included hospitals, sud- denly free of the threat that Romney would roll back Obama's health care law. Obama was elected Nov. 4, 2008. The Dow plunged more than 400 points on each of the next two trading days. The blue-chip average hit bottom at 6,547 in March 2009, less than two months after Obama took office. trial average plummeted as much as 369 points, or 2.8 percent, in the first two hours of trading. It recov- ered steadily in the after- noon, but slid into the close and ended down 313, its biggest point drop since this time last year. ''It does look ugly,'' said Robert Pavlik, chief market strategist at Banyan Partners LLC. He said it was hard to untangle the impact of Europe-related selling from nerves about the nation's fiscal uncer- tainty. $50 $ SAVE FROM With This Coupon TO 150 QUALITY 2-SIDED FLIPPABLE MATTRESSES FACTORY MATTRESS OUTLET (since 1920) 3650 Main St. in Cottonwood 347-3646 • FREE Delivery • FREE Take-Out Open 7 Days the next three-plus years as the crisis eased and a frag- ile economic recovery took root. Then it doubled over Things were looking so good that until recently, some analysts were betting on when the market might hit an all-time high. Of course, the market today is far less precarious than it was in 2008. The financial system has stabi- lized. Europe appears to be serious about tackling its debt crisis, despite fre- quent setbacks. The housing market appears to be coming back, and the economy has added jobs for more than two and a half years. On the day after the 28 other presidential elections since 1900, the stock mar- ket has gone up 13 times and down 15 times, according to research by Bespoke Investment Group, a market research company. The best day-after per- formance was in 1900, another re-election. The Dow jumped more than 3 percent on the day after William McKinley won a second term, according to Bespoke. Over 25 years of experience The North State's premier supplier of stoves STOVE JUNCTION COMPLETE AUTO REPAIR Tony & Carmen Kelley 22679 Moran Road Corning, Ca 96021 530-824-2195 Fax: 530-824-0748 recommened 30K, 60K, 90K SERVICES AT LOWER PRICES All makes and models. We perform dealer Smog Check starting at$ (MOST CARS & PICK-UPS) 527-9841 • 195 S. Main St. +$ 825 certificate 2595 20% OFF select models Tues-Sat 9am-5pm • Closed Sun & Mon Don't be left in the 5A>6! Serving Butte, Glenn & Tehama Counties 22825 Antelope Blvd., Red Bluff 530-528-2221 • Fax 530-528-2229 www.thestovejunction.com over, traders turned to Europe's increasingly sickly economy, dragged down by a debt crisis for more than three years. The 27-country European Union said unem- ployment there could remain high for years. The European Commis- sion, the executive arm of the EU, said that it expects the region's economic out- put to shrink 0.3 percent this year. In the spring, the group predicted no change. For next year, the com- mission predicted 0.4 per- cent growth, barely above recession territory. It pre- dicted 1.3 percent last spring. With the 2012 election Renewed focus on European economic prob- lems also pushed the price of oil down $4.27 per bar- rel, its biggest decline of the year, to finish at $84.44, the lowest since July 10. The Dow closed down 312.95 points, or 2.4 per- cent, at 12,932.73 — its first close below 13,000 since Aug. 2. 500 index fell 33.86 points, or 2.4 percent, to 1,394. That was the broader index's first close below 1,400 since Aug. 30. The Nasdaq composite The Standard & Poor's index lost 74.64 points, or 2.5 percent, to 2.937.29. The