The euphoric effect that the election hoopla had on Wall Street clearly
has subsided, and investors are again reminded that the new guy taking
over does not have a magic remedy that will instantaneously make this
big economic mess disappear. The Dow Jones Industrial Average plunged
443.48 points on Thursday to close at 8,695.78, bringing the total
decline to 10% in the past two days. Abysmal retail sales reports
coupled with a Labor Department report Wednesday saying that the number
of people continuing to draw unemployment benefits jumped to a 35-year
high helped remind the Street of harsh economic realities. Deal Stocks
were in no way insulated from the massive sell-off.
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Women's retailer Talbots Inc. was one of the big losers among Deal Stocks, sliding 11.14% to close at $6.70 following a Thursday announcement that it is seeking to sell its J. Jill clothing brand just
two years after buying it for about $517 million.
Gas producer
Williams Cos. said Thursday it would review strategic options and
consider shedding one or more of its units to unlock the value of its
businesses. The news did not unlock the value of its stock, as shares
fell 7.71% to close at $18.08.
News that Yahoo! Inc. may be willing
to reopen talks with Microsoft Corp. about an acquisition did little to
move its shares, as its stock inched up 0.29% to close at $13.96. - Michael Rudnick
