Citi Paces Dow's 248-Point Drop

Economic news and financial upheaval mean losses for stocks
By Nick McMaster,  Newser Staff
Posted Jan 14, 2009 3:29 PM CST
Traders work on the floor of the New York Stock Exchange today.   (AP Photo)
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(Newser) – Financial shares led stocks to deep losses today as a set of economic reports did little to reassure investors, MarketWatch reports. Citigroup lost 23.05% on news it will shed several units, while an index fund of financial shares dropped nearly 5%. The Dow closed down 248.42 at 8,200.14. The Nasdaq shed 56.82, settling at 1,489.64, and the S&P 500 dropped 29.17 to close at 842.62.

Reports on retail sales and import prices showed sharp declines in both. Consumer discretionary stocks felt the pain, with Nordstrom dropping 8.5% and Goodyear Tire down 2.6%. The Federal Reserve released its “beige book” report, showing contraction in most industries nationwide. “Most districts reported that layoffs continued,” it said, and “a substantial number of job reductions in the financial sector have yet to show up in payroll statistics.”