[R]9:50 PM New York – U.S. stocks plunged on the worries that economic recession will be longer and deeper than generally estimated. Energy stocks fell on 10% decline in crude oil prices and retail stocks fell after retailers offered more and larger discount than usual to kick-off holiday sales.[/R]

Of the stocks in S&P 500 index, 498 increased, 2 decreased and none were unchanged. Of the index stocks, 486 fell more than 3%, 1 closed above 3% and 214 plunged more than 10%.

Prologis led decliners in the S&P 500 index with a fall of 34% followed by losses in CB Richard Ellis of 29.4%, in Liz Claiborne of 26%, in Developers Diversified of 25.4%, in Janus Capital Group of 25.4%, in Sprint Nextel Company of 24.4%, in Wachovia Corp of 24% and in Merrill Lynch of 23.4%.

Banks, financials and insurance companies were among the leading decliners. KeyCorp fell 22%, Citigroup dropped 22%, in Prudential Financial declined 21% and in Bank of America of 21%.

The Hartford Financial Services Group, Inc (HIG: chart) fell 21.8% or $1.84 to $6.61 after financial stocks declined. Prudential Financial (PRU: chart) plunged 21% or $4.55 to $17.55 and MetLife dropped 13% or $3.83 to $24.93.

Inergy Holdings, L.P (NRGP: chart) dropped 6.6% or $1.34 to $19.16 after the propane and other natural gas liquids energy company reported fourth quarter revenues rose 25% to $340.9 million from $273.5 million a year ago. Net income in the quarter rose 20.5% to $4.7 million or 23 cents per diluted share compared to net income of $3.9 million or 19 cents per share a year ago.

Intel Corporation (INTC: chart) dropped 9.0% or $1.24 to $12.56 after the semiconductor chip makers and other technology companies fell sharply on the worries that capital spending from businesses will decline in the next fifteen months.

Infineon Technologies AG (IFX: chart) lost 11% or 28 cents to $2.07 and Advanced Micro Devices (AMD: chart) dropped 15.3% or 36 cents to $2.00. Micron Technology, Inc (MU: chart) lost 18.3% or 50 cents to $2.24 and Texas Instruments Incorporated (TXN: chart) plunged 10% or $1.52 to $14.01.

Liz Claiborne, Inc (LIZ: chart) slid 26% or 75 cents to $2.11 after the retailer fell on the worries that higher discounts will drive the earnings sharply lower in this holiday season. A week ago Moody’s cut the company’s debt rating to junk level.

Mentor Corporation (MNT: chart) rose 90.0% or $14.43 to $30.58 after the world’s largest health-care company Johnson & Johnson announced a definitive agreement to acquire Mentor for approximately $1.07 billion in a cash tender offer. Under the terms of the agreement, Johnson & Johnson will commence a tender offer to purchase all outstanding shares of Mentor at $31.00 per share.

Noble Corporation (NE: chart) dropped 17% or $4.51 to $22.28 after the third-largest U.S. offshore oil driller was cut to “buy” to “neutral” at Merrill Lynch.

Nabors Industries Ltd (NBR: chart) lost 16.2% or $2.34 to $12.16 after the land drilling contractor fell after crude oil futures fell nearly 10% at close today. Exxon Mobil (XOM: chart) declined 7.3% or $5.84 to $74.31, Schlumberger Limited (SLB: chart) declined 17% or $8.45 to $42.08 and Valero Energy dropped 11% or $2.12 to $16.23.

Rohm & Haas Company rose 3.5% or $2.41 to $70.82 after the acquirer of the company, Dow Chemical (DOW: chart) and subsidiary of Kuwait Petroleum Corporation signed a joint venture agreement. Dow will receive pre-tax proceeds of $9 billion that will help fund the purchase of Rohm & Haas.

Sprint Nextel Corporation (S: chart) plunged 24.4% or 68 cents to $2.11.

Wal-Mart Stores (WMT: chart) declined 5.2% to $53.01, Costco Wholesale Corp (COST: chart) declined 7% or $3.56 to $47.91, Macy’s (M: chart) 13.6% or $1.01 to 46.41, JC Penney (JCP: chart) declined 13% or $2.44 to $16.55, Sears Holdings (SHLD: chart) fell 12.2% or $4.41.

XL Capital Ltd (XL: chart) fell 22% or $1.09 to $3.94 after the business insurer was cut to “neutral” from “buy” at Merrill Lynch.