Shades of '29?

Thursday was not a good day on Wall Street, with the Dow dropping over 362 points to close at 13,567.87. Meanwhile, the S&P 500, like the Dow, fell 2.6 percent, and the Nasdaq also took a hit, dipping 2.25 percent by day’s end.

The New York Times:

A report that consumer spending slowed in September reinforced analysts’ concerns about a broad slowdown in the fourth quarter economy, spurred by surging energy costs and a recession in the housing market.

“People are getting nervous looking to the holiday season,” said Anthony Conroy, head equity trader at BNY ConvergEx Group. “Discretionary income is going to be a little bit less. People are going to be spending less because they’re paying more for oil and mortgage payments there.”

Of the 30 Dow components, only Microsoft gained ground. Financial stocks, including JPMorgan Chase and American Express as well as Citigroup, were particularly pummeled. Manufacturers including Alcoa and General Motors were also hit hard.

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