By Lynn Thomasson Nov. 12 (Bloomberg) -- U.S. stocks declined for a third day as Best Buy Co. predicted lower profit and oil's slide to a 20- month low dimmed the earnings outlook for commodity producers. Best Buy, the world's largest electronics retailer, fell 13 percent after citing a ``rapid, seismic'' slowdown in consumer spending. Exxon Mobil Corp. and Chevron Corp. declined as crude sank below $58 a barrel, while American Express Co. tumbled 9.2 percent on a report the credit-card company is seeking $3.5 billion in government aid. General Motors Corp. rallied 19 percent as lawmakers called for a rescue of the auto industry. ``It's hard to get away from the drumbeat of negatives,'' said Liam Dalton, who oversees $1.3 billion as New York-based chief executive officer of Axiom Capital Management. Best Buy's forecast cut is ``a further sign of the retrenchment of the consumer and spending that's slowing very, very rapidly across the board.'' The Standard & Poor's 500 Index fell 2.2 percent to 879.51 at 9:34 a.m. in New York. The Dow Jones Industrial Average retreated 195.7 points, or 2.3 percent, to 8,498.26. The Nasdaq Composite Index lost 1.7 percent to 1,554.47. About 10 stocks fell for each that rose on the New York Stock Exchange. The S&P 500 plunged 44 percent from its October 2007 record after the economy contracted in two of the last four quarters and profits for companies in the index extended a yearlong slump. President-elect Barack Obama may inherit the worst U.S. recession in three decades, according to economists surveyed by Bloomberg News, as more than $918 billion in global credit losses drag on global growth. The benchmark for U.S. stocks fell yesterday as a deteriorating outlook for American industry and oil's retreat signaled the economic slump may deepen. Best Buy declined $2.99 to $20.89. Profit for the year ending in February may be as low as $2.30 a share, the company said. Analysts projected $3.04, according to the average estimate in a Bloomberg survey. Oil Below $60 Exxon Mobil, the world's biggest energy company, fell 2.1 percent to $71.12. Chevron slipped 2.2 percent to $71.96. Oil fell as low as $57.70 a barrel in New York on forecasts that tomorrow's Energy Department report will show U.S. crude inventories grew last week as the worsening economy lessens energy demand. GM rallied 55 cents to $3.47 after House Speaker Nancy Pelosi urged Congress to support the auto industry, rejecting calls to let the country's largest carmaker collapse. Congressional Democrats are urging President George W. Bush to back an economic stimulus package that would provide federal aid to state governments while boosting spending on unemployment assistance, food stamps and infrastructure projects. Third-quarter earnings decreased 17 percent on average for S&P 500 companies that have reported results, according to Bloomberg data. Profits for 2008 will drop an average 8.5 percent and rise 12 percent next year, based on a survey of analysts' estimates. Google Inc. lost 3 percent to $302.03. Citigroup Inc. analysts said online advertising growth may slow ``materially'' this quarter and lowered their 2008 through 2010 profit estimates for the operator of the most-used Internet search engine. To contact the reporter on this story: Lynn Thomasson in New York at lthomasson@bloomberg.net.

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