By Elizabeth Stanton Nov. 5 (Bloomberg) -- U.S. stocks dropped after a report showing 157,000 job losses and falling production at the world's largest steelmaker spurred concern the economy will worsen even as President-elect Barack Obama takes steps to stimulate growth. Nucor Corp., the largest U.S.-based steel producer, fell 4.6 percent after ArcelorMittal doubled production cuts amid slowing demand. Transocean Inc., the world's largest offshore oil driller, slid 4 percent on profit that fell short of the average analyst estimate. The market's declines came a day after the biggest presidential Election Day gain in 24 years. ``The rally has already taken place as polls made it clear who would be elected,'' said Gilles Fleckenstein, chief executive officer of BNP Paribas Asset Management in Paris, which oversees $419 billion in assets. ``Now, people will wait to see what happens. We're in the heart of the recession now.'' The Standard & Poor's 500 Index dropped 17.65 points, or 1.8 percent, to 988.1 at 9:33 a.m. in New York. The Dow Jones Industrial Average retreated 136.04, or 1.4 percent, to 9,489.24 and the Nasdaq Composite Index decreased 26.96, or 1.5 percent to 1,753.16. The retreat halted an 18 percent rebound from the S&P 500's five-year low on Oct. 27. The benchmark for U.S. equities has lost 32 percent this year, the steepest annual retreat since 1937, and Obama will have to contend with an economy pummeled by the fastest contraction in manufacturing in 26 years and the lowest consumer confidence. The report by ADP Employer Services showed more job cuts than economists had projected and precedes the Labor Department's Nov. 11 release of employment data for October, expected to show U.S. payrolls shrank for a 10th straight month. To contact the reporters on this story: To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net

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