U.S. Stocks Tumble in Market's Worst Two-Day Slump Since 1987 (Lynn Thomasson)

  Nov. 6 (Bloomberg) -- U.S. stocks slid, sending the market to its biggest two-day slump since 1987, after jobless claims jumped and the shrinking economy crushed earnings at companies from Blackstone Group Inc. to News Corp.

  Blackstone, the world's largest private-equity firm, fell 12 percent after posting the biggest quarterly loss in its 18 months as a public company. News Corp. sank 16 percent after the media company controlled by Rupert Murdoch said ad sales decreased. Exxon Mobil Corp. dropped 5.1 percent and Chevron Corp. fell 6.4 percent as oil tumbled to a 19-month low below $61 a barrel.

  "We're a long way from the end of the economic challenges," said Mike Morcos, who helps manage $1 billion at Old Second Wealth Management in Aurora, Illinois. "Earnings next year are going to be significantly lower and estimates are going to continue to come down."

  The Standard & Poor's 500 Index fell 5 percent to 904.9, extending its two-day loss to 10 percent. The Dow Jones Industrial Average retreated 443.48 points, or 4.9 percent, to 8,695.79. The Russell 2000 Index of small U.S. companies declined 3.6 percent to 495.92. The MSCI World Index of 23 developed markets lost 6.2 percent to 921.87.

  The two-day tumble wiped out more than half of the S&P 500's rebound from a five-year low on Oct. 27. An industry report showing an unexpected decline in sales at U.S. chain stores in October also weighed on stocks as 25 of 27 companies in the S&P 500 Retailing Index slumped.

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