* Energy shares weak after election result
* Pfizer gets OK for rheumatoid arthritis treatment
* Indexes off: Dow 1.3 pct, S&P 1.3 pct, Nasdaq 1.2 pct
By Chuck Mikolajczak
NEW YORK, Nov 7 U.S. stocks dropped on Wednesday
as investors renewed their focus on a looming fiscal showdown in
Congress after the re-election of President Barack Obama, and
comments by European Central Bank President Mario Draghi fed
concern about Europe's debt crisis.
The S&P energy index dropped 2 percent as companies
in the sector will likely see more regulation in President
Obama's second term, with less access to federal lands and
water, even as the administration promotes energy independence.
With political uncertainty removed, investors attention
swings to the looming "fiscal cliff" of some $600 billion in
spending cuts and tax increases due to kick in next year, which
could derail the U.S. economic recovery.
Investors concerns about the global economy were compounded
by comments from ECB President Draghi, who said the bank expects
the euro zone economy to remain weak "in the near term" and that
recent data suggests the German economy, Europe's biggest, is
being affected by the region's debt crisis.
In Greece, the ruling coalition hopes to overcome its own
divisions and defy protesters Wednesday to push through an
austerity package needed to secure aid and avert bankruptcy,
with Prime Minister Antonis Samaras expected to narrowly win
support for budget cuts, tax hikes and labor reforms.
"The election is over, nothing changed. It was fun, but it's
kind of like a roller coaster - you just end up where you
started but there was lots of excitement in the middle of it,"
said Ron Florance, managing director of investment strategy for
Wells Fargo Private Bank based in Scottsdale, Arizona.
"We are now squarely focused on what are you going to do
about the fiscal cliff and how is Europe going to resolve this
(debt crisis) problem, those two problems haven't gone away."
The Dow Jones industrial average dropped 175.54
points, or 1.33 percent, to 13,070.14. The Standard & Poor's 500
Index lost 18.74 points, or 1.31 percent, to 1,409.65.
The Nasdaq Composite Index fell 36.23 points, or 1.20
percent, to 2,975.70.
Among energy companies that fell were Alpha Natural
Resources Inc, which dropped 10 percent to $8.66,
Peabody Energy Corp, which slumped 8.4 percent to $25.69
and Arch Coal Inc., which tumbled 11 percent to $7.71.
Healthcare stocks also fell, as President Obama's reelection
rules out the possibility of a wholesale repeal of his
healthcare reform law, but questions remain as to what parts of
the domestic policy will be implemented. The S&P health care
index lost 1.4 percent.
But Tenet Healthcare Corp was a bright spot in the
sector, up 5 percent to $26.20 after it reported higher
quarterly earnings on Wednesday as outpatient surgeries at its
Pfizer Inc's Xeljanz treatment for rheumatoid
arthritis, one of the company's potentially most lucrative
experimental drugs, was approved by U.S. regulators late Tuesday
and is now poised to compete with Abbott Laboratories Inc's
top-selling Humira. Pfizer shares shed 0.9 percent to
$24.27 while Abbott declined 1.3 percent to $64.
Macy's Inc gained 1.2 percent to $41.89 after the
department store retailer reported a higher third-quarter
profit, helped by sales gains, and raised its full-year profit
Other S&P 500 companies scheduled to post earnings include
Mondelez International Inc, Monster Beverage Corp
, Whole Foods Market Inc and Qualcomm Inc