* Investors refocus on economy after Democrat Obama's win
* Economic worries weigh after employment data
* Boeing falls after more delays for Dreamliner
* Dow and S&P off 2.8 pct, Nasdaq off 3 pct
(Updates to midday)
By Leah Schnurr
NEW YORK, Nov 5 (Reuters) - U.S. stocks fell on Wednesday
as worries about the weakening global economy returned to
center stage just a day after the historic U.S. presidential
election.
President-elect Barack Obama was immediately faced with
gloomy economic news, including reports showing deep cuts in
employment by private employers, possibly foreshadowing
weakness in the government's employment report on Friday. Other
data showed companies planned layoffs at the highest level in
nearly five years.
Boeing Co <BA.N> was the biggest drag on the Dow, falling 7
percent, after more delays for its key 787 Dreamliner.
The concern over the depth and length of a slowdown
underscored the massive task now facing Obama as he tries to
lead the United States and the world out of its worst financial
crisis since the 1930s.
"I think it's a bit of back to basics," said David Bianco,
chief U.S. equity strategist at UBS in New York.
"Let's continue to follow the economy, what's going on with
commodity prices, what's going on with interest rates and
credit availability."
The Dow Jones industrial average <> fell 265.63 points,
or 2.76 percent, to 9,359.65. The Standard & Poor's 500 Index
<.SPX> lost 28.28 points, or 2.81 percent, to 977.47. The
Nasdaq Composite Index <> gave up 52.56 points, or 2.95
percent, at 1,727.56.
The day's declines came on the heels of Tuesday's more than
3 percent rally, the biggest Election Day advance ever. But
stocks remain at multi-year lows after being battered by
worries over the economic picture, fallout from the credit
crunch and the effect of corporate profits.
United Technologies Corp <UTX.N> gave up 4 percent to
$54.98 after the diversified manufacturer said it stood by its
2008 profit forecast, though the strengthening dollar could put
results near the low end of the range.
Boeing was down 7.1 percent at $49.44 the day after it said
the first flight of its Dreamliner would be postponed until
next year, rather than the target of the end of this year due
to the recent machinists' strike.
Exxon Mobil <XOM.N> gave up 2.7 percent at $75.44 as the
price of oil slid more than $4 to $65.77 a barrel after a
government report showed demand is slowing in the United
States, the world's top energy consumer. An S&P index of energy
shares <.GSPE> fell more than 3 percent.
Steelmakers Nucor Corp <NUE.N> and U.S. Steel Corp <X.N>
fell after ArcelorMittal <MTP.PA> <ISPA.AS>, the world's
largest steelmaker, forecast a weaker fourth quarter, slashed
output and froze growth plans.
Nucor was down 4.9 percent at $37.70, while U.S. Steel
tumbled 4.4 percent to $39.35.
A report from ADP Employer Services said showed private
employers made their deepest job cuts in six years last month
and companies' planned layoffs surged to their highest in
nearly five years. The Institute for Supply Management said
the service sector contracted sharply as the worst financial
crisis in 80 years hammered the world's largest economy.
On the Nasdaq, Cisco Systems <CSCO.O> was down 3.1 percent
at $17.76 ahead of quarterly results expected after the bell.
(Editing by Kenneth Barry)
