Stocks fell yesterday with selling generated by a sudden leap in Middle East hostilities and concern about the corporate fallout from Enron, the former Wall Street darling that is now the largest ever US bankruptcy. These latest concerns overshadowed optimism about the recession-wracked economy, which made November the best month for the market since April with a 7.5 per cent gain in the broad Standard & Poor's 500 index. Stocks have been on a tear after skidding to three-year lows on September 21st after the air attacks on the World Trade Centre and Pentagon.
"We've had quite a bit of a rally since the lows in September and then you've got ... the Mid-East situation and the Enron thing," said Michelle Clayman, portfolio manager at New Amsterdam Partners. "Maybe there's a little bit of profit-taking here." Argentina's continuing financial crisis also contributed to Wall Street's jitters, helping overshadow a batch of better-than-expected economic data, including a report that US manufacturing activity fell at a slower pace last month.
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