Stocks around the world are getting hammered today.
“U.S. stocks opened lower and kept falling throughout the morning in New York. The Dow Jones industrial average was down 2.5 percent at 12,918.23 and the broader S&P 500 index off the same rate at 1,392.99,” the Associated Press report.
It’s probably worth noting that coal stocks have taken an unusually large hit today [per the AP]:
James River Coal Co. was the sector's biggest decliner Wednesday after reporting a wider-than-expected loss in the third quarter and saying available cash had dropped to $172 million on Sept. 30 from $192 million as of June 30. The shares plunged 22.6 percent to $3.63.
Elsewhere Peabody Coal Co. fell $2.68, or 9.2 percent, to $26.36. Arch Coal Inc. dropped 96 cents, or 11.1 percent, to $7.70 and Alpha Natural Resources Inc. sank $1.21, or 12.6 percent, to $8.41.
Meanwhile, European stocks are faring just as poorly if not worse.
“In Europe, the FTSE 100 index of leading British shares dropped 1.6 percent to close at 5,791.63 while Germany's DAX fell 2 percent to 7,232.83. The CAC-40 in France dropped 2 percent to 3,409.59,” the AP notes.
However, as Sam Ro at Business Insider notes, it's might be unfair to claim outright that this is all President Obama's fault. Indeed, as the chart below illustrates, a major sell-off the day after a presidential election isn’t exactly unheard of:
"With the S&P 500 down more than 1% this morning, the current cycle is following the typical trend of positive Election Days and weakness the day after," the Bespoke Investment Group notes.
Bottom line: Whether it's the trouble in Europe or the re-election of President Barack Obama, investors are not happy today and it's showing.
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Front page photo source courtesy the AP. This story has been updated.