Late Sell Off Sends Wall Street Even Lower

November 20, 2008 5:14 p.m. EST

New York, NY (AHN) - Another end of day sell off sent the major indices to fresh multi-year lows for a second consecutive session. The S&P 500 closed at levels not seen since April 1997.

The markets opened up on a weak note after the Labor Department reported weekly initial jobless claims rose to 542,000 for the week ending Nov 15. The result was much higher than the 505,000 economists had expected. Continuing claims now total 4.01 million.

The Dow Jones Industrial average fell 444 points or 5.3 percent to close at 7,552, breaking the 5-year low set just a day ago. 29 of 30 Dow components finished lower.

General Motors was the lone Dow gainer, up 3 percent as some uncertainty was removed from the auto bailout picture. Congress did not push a particular proposal, but made it clear it will work with automakers to get something done.

Congress is not set to meet again till January but said it would convene in December if automakers created a detailed proposal for government aid.

Citigroup, down 26.4 percent, was the largest Dow laggard for a second consecutive day. Shares sank even after news broke that Saudi Prince Alwaleed bin Talal said he will increase his Citigroup position by 1 percent, giving him a 5 percent stake in the bank.

The S&P 500 shed 54 points or 6.7 percent to close at 752, a level not seen since April 1997.

All ten major economic sectors finished lowered. The financial sector was weak again, down 10.5 percent. However, the energy sector posted the largest drop, falling 11.2 percent on Thursday.

Tech fell as well, the Nasdaq Composite dropped 70 points or 5 percent. Losses may have been worse if not for the semiconductor stocks. The sector reversed course Thursday and managed a 2.5 percent gains.

Crude oil continued to slide, hitting a 3-year low. The commodity lost $4 a barrel to settle at $49.62.

Friday's session is clear of economic reports, but will see quarterly reports from H.J Heinz Company, J.M Smucker and AnnTaylor Stores.