The Dow lost 312 points, its biggest drop this year, while the S&P 500 fell its hardest since June. It declined 2.4 per cent to close at 1,394.59. Banks and healthcare and energy companies, industries where Mitt Romney had promised to revise Obama-era reforms, bore the brunt of the post-election sell-off (Reuters). Investor appetite was also blunted by fears over whether the largely unchanged balance of control in House, Senate and White House will mean a solution to the fiscal cliff is left to the last minute. There were also signs of trouble in Europe: ECB President Mario Draghi warned that the eurozone crisis was beginning to hurt Germany's economy (Bloomberg). House Speaker John Boehner suggested that Republicans may accept increasing tax revenue as part of a resolution to the fiscal cliff. "For purposes of forging a bipartisan agreement that begins to solve the problem, we're willing to accept new revenue, under the right conditions," he said. Mr Boehner nevertheless cast doubt on whether a deal could be reached before next year, as the current Congress enters a lame-duck period (Wall Street Journal). He also said President Obama had "no mandate for raising tax rates" as part of a deal (Financial Times). The Greek government has gained enough votes to approve critical austerity measures for securing the next bailout tranche. The package of spending cuts, promised as the last of the crisis by the Greek prime minister, secured a slim majority of 153 votes. Fannie Mae watch: The GSE "expects to report annual net income for the first time since 2006," according to its third-quarter results (Fannie Mae). The median home sales price rose in 120 of 149 cities from a year earlier in the third quarter, according to data released on Tuesday (Bloomberg). Rochdale Securities said it was close to finalising a rescue deal. An unauthorised $1bn trade in Apple shares overwhelmed Rochdale's $3.4m capital at the end of October after being the firm was forced unwind. Dick Bove, its banks analyst, has told potential investors in Rochdale that he will stay if a rescue is made (Wall Street Journal). Shares in Apple entered a bear market. Apple stock hit a five-month low on Tuesday, and has fallen 20 per cent in price since a September high above $700. It closed on Tuesday at $558 a share (Reuters). Export watch on Thursday, which brings the US trade balance for September. Consensus -$45.4bn. Exports fell 1 per cent in August as eurozone and Asian demand fell, so watch that... Meanwhile weekly jobless claims are also out, consensus 370k. In case you missed it - Macro Man on fiscal cliff politics. Fixing the fiscal cliff by breaking it up? David Wessel on the real economic problems to be solved - including climate change. "So let's get the facts straight. Elections are rarely mandates. Election-night attempts at (prediction) market manipulation.