The news of the day was the incredible sell-off in stocks heading into the close, with the S&P 500 breaking through its key support level of 768, causing it to close down 54 points, or 6.7%, to 752 - the lowest level since April 1997. The Dow Jones industrial average closed down 445 points, or 5.6%, to 7552 and the Nasdaq was down 70 points, or 5.1%, to 1316. In Canada, it was even worse because of a $5 drop in oil prices. The TSX fell 756 points, or 8.9%, to 7734 as crude oil fell below $50 for the first time since 2005.

Part of the fear had to do with the Big Three automakers failing to secure a $25 billion bridge loan from Capital Hill. U.S. Senate Majority Leader Harry Reid said that automakers must develop a bailout plan the U.S. Congress would be willing to pass. "We can only help if they are willing to help themselves," Reid said. Democratic leaders say they will consider an auto aid package in December.

Speaking in the afternoon, Treasury Secretary Henry Paulson said the Treasury's priority is restoring stability and repairing capital markets, but that market recovery will take some time. He urged further efforts to find solutions that aren't reckless. Urging a bipartisan effort to find solutions, Paulson said regulators have the tools to maintain stability through the right reforms. Paulson called the events of the last year "humbling," adding that better regulation is in order, but noted calls for more regulation in and of itself are not helpful.

Earlier in the day, initial claims for unemployment benefits soared 27k to 542k in the week ending Nov. 15 - the highest level seen in 16 years, marking the second week in a row that more than half a million people have filed for benefits, the Department of Labor reported. Continuing claims rose above 4 million for the week ending Nov. 8, their highest level since 1982. Initial jobless claims were expected to fall to 505k. Last week's figure was revised down by 1k to 515k.

The four-week moving average for initial claims has now broken the 500k threshold for the first time since 1983, reaching 506,500, up from 490,750 in the previous week. Continuing claims soared up by 109k to 4.012 million, against expectations of a slight rise to 3.900 million. The previous week's figure was upwardly revised to 3.903 million.

"Initial claims have averaged 528,500 in the first two weeks of November, a level of jobless claims that over the last ten years has corresponded with a 400,000 decline in nonfarm payrolls," economists John Ryding and Conrad DeQuadros from RDQ said.

Manufacturing in the region covering eastern Pennsylvania, southern New Jersey and Delaware continues to deteriorate beyond the 18-year low recorded last month as the Philadelphia Fed's index of manufacturing fell to -39.3 in November, the lowest level since October 1990. Economists had expected minor improvement to -35.0 for the month. In the prior report, activity fell by its largest margin ever, dropping over 40 points to -37.5.

The employment index performed worse than in October, dropping to -25.2 from a previous -18.0 reading. Six-month expectations look for further deflation. The prices index moved into deflation territory at -30.7, a huge drop from the previous month's +7.2 reading.

Andrew Pyle, investment adviser at Scotia Capital, wrote "The move [in the Philly Fed] is not that huge, but from the +3.8 level in September what has happened in just two months is huge and it is reverberating through stocks this morning."

North American stocks sold off today with the S&P 500 breaking through its 2002 low of 768. It fell as low as 747.78. The S&P TSX at one point was down more than 500 points, driven down as Nymex crude oil briefly fell below $50 per barrel.

According to the Conference Board, the index of U.S. leading indicators declined further than expected in October, with the headline indicator contracting 0.8% month-over-month despite expectations for a 0.6% fall. September's 0.3% gain was revised down to a 0.1% increase.

A leading indicator for the U.S. commercial real estate market continued decelerating for the fifth consecutive quarter on Thursday, with all components of the index lower in the third quarter, according to the National Association of Realtors. The NAR's Commercial Leading Indicator for Brokerage Activity moved down 1.7% in the third quarter, following a drop of 0.9% in Q2, pushing the index down to a reading of 116.5. The index is 3.1% lower than in the third quarter of 2007, when it stood at 120.3.

Testifying before the U.S. House Small Business Committee in Washington, D.C., Federal Reserve Governor Randall Kroszner said small businesses are having a difficult time in accessing credit given the current economic environment. Kroszner said cumulative rate cuts should lower lending costs and stimulate business activity for small firms.

Underground natural gas storage in the United States unexpectedly increased by 16 billion cubic feet in the week ending Nov. 14, the Energy Information Administration (EIA) reported Thursday. The weekly figure was expected to decline 5 bcf according to Bloomberg's survey. Estimates ranged from -15 to +7. Last week, the EIA reported a supply increase of +46 Bcf but that was revised to +51 Bcf because of revisions from the EIA.

In Canada, the key release of the day was wholesale sales for September, which rose 1.5% to $46.3 billion, largely due to a 10.5% rise in the sale of motor vehicle parts and accessories. Economists had expected the headline figure to fall 0.6%.

Ontario Finance Minister Dwight Duncan said his government is considering "temporary solvency relief measures" to deal with concerns about pension plan shortfalls in the province. Duncan did not specify what type of relief measures are being looked at, but conceded that action is necessary due to extreme stock market losses that have wiped billions of dollars from pension plans in Ontario.

Canadian corporations earned $77.3 billion in the third quarter of 2008, a 7.6% increase over the previous quarter due in a large part to increased profits among oil and gas extractors, Statistics Canada reported. Oil and gas extractors earned $11.2 billion in operating profits, up 15.1% as firms benefited from higher crude oil prices.

In overseas news, the Swiss National Bank unexpectedly lowered target range for the three-month Libor by 100 basis points, bringing its range to 0.5-1.5%. In a release, the bank said the move "will provide the Swiss franc money market with a generous and flexible supply of liquidity in order to bring the Libor down to the middle of the target range."

In the UK, retail sales fell by 0.1% in October, notably less than the 0.9% decline expected after sales levels slipped 0.5% previously, the Office for National Statistics reported. Meanwhile, September's figure was revised down from an initial estimate of -0.4%.

By Stephen Huebl, This email address is being protected from spam bots, you need Javascript enabled to view it , with contributions from Patrick McGee, This email address is being protected from spam bots, you need Javascript enabled to view it , Adam Button, This email address is being protected from spam bots, you need Javascript enabled to view it , Erik Kevin Franco, This email address is being protected from spam bots, you need Javascript enabled to view it , Sean McKibbon, This email address is being protected from spam bots, you need Javascript enabled to view it , Christine Wong, This email address is being protected from spam bots, you need Javascript enabled to view it and Todd Wailoo, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Nancy Girgis, This email address is being protected from spam bots, you need Javascript enabled to view it

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