Dow falls 59 as late-day gloom kills a rally

The selling offsets decent earnings from Cisco Systems and Home Depot. Techs fall, led by Microsoft and Intel. Michael Kors rises. Gold and oil slip. The major averages have fallen more than 6.6% since mid-September.

By Charley Blaine Nov 13, 2012 5:45PM
Updated: 10:20 p.m. ET

(Reuters) Stocks fell back in late trading today as continuing worries about the effects of the fiscal cliff on the domestic economy pulled the major averages lower and offset strong earnings from Home Depot (HD).

Cisco Systems (CSCO) shares were up 7.4% after hours to $18.12. Fiscal-first quarter earnings of 48 cents a share were up 11.6% from a year ago and beat Street estimates by 2 cents. Revenue was up 6% to $11.9 billion, beating the Street estimate of $11.8 billion.

But it was the kind of sell-off you don't like to see. The Dow Jones industrials ($INDU) were up as many as 83 points on the Home Depot news -- and lost all of the gain and then some. Financial and technology shares led the market lower. Also weighing on the market: a rising dollar against the euro, which pushed commodity prices and interest rates lower.

Microsoft (MSFT), down 90 cents to $28.14, weighed heavily on technology stocks after the company announced that Steven Sinofsky, who led the development of its Windows 8 operating system, is leaving the company. Sinofsky had been considered a front runner to succeed Steve Ballmer as CEO. (Microsoft is the publisher of MSN Money.)

The Dow fell 59 points to 12,756, its fourth loss in five sessions. The Standard & Poor's 500 Index ($INX) was off 5.5 points to 1,375, its third loss in the last five days. The Nasdaq Composite Index ($COMPX) dropped 20 points to 2,884, its fourth loss in five sessions.

The Nasdaq-100 Index ($NDX), heavily influenced by Apple (AAPL) fell 21 points to 2,562. Apple was up 7 cents to $542.90.

Futures trading suggests a decent open for stocks on Wednesday, much like today. The big question will be if a rally will hold.

Energy prices -- New York close



Tues.     Mon.

Month chg.

YTD chg.
Crude oil (-CL)

$85.38

$85.57

-1.00%

-13.61%
(per barrel)











Heating oil (-HO)

$2.9608

$2.9992

-3.31%

1.60%
(per gallon)











Natural gas (-NG)

$3.7390

$3.5700

1.27%

25.09%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.6538

$2.6763

0.89%

-0.14%
(per gallon)











Brent crude 

$108.26

$109.07

-1.04%

0.82%
(per barrel)











Retail gasoline

$3.4400

$3.4370

-2.30%

5.01%
(per gallon; AAA)












The Dow has fallen 6.2% since peaking at 13,597 on Sept. 20. The S&P 500 has fallen 6.2% since peaking at 1,466 on Sept. 14. The Nasdaq has drooped 9.4% since its Sept. 14 high. Apple has fallen $22.7% since peaking on Sept. 19.

The pullback has trimmed the Dow's gain for the year to 4.4%. The S&P 500 is still up 9.3%, while the Nasdaq is up 10.7%. It had been up 22% for the year as of Sept. 14.

Intel (INTC) continued to sag on worries about the future of personal computers, hitting a new 52-week low of $20.18 before closing at $20.28, down 48 cents. Rival Advanced Micro Devices (AMD) said it has hired J.P. Morgan to look at strategic alternatives. An outright sale, however, doesn't seem likely.

Home Depot led the Dow and was the second-best performer among S&P 500 stocks (after Advanced Micro Devices), rising $2.22 to $63.38. The retailer reported earnings that beat expectations and raised its outlook.

Shares of TJX Cos (TJX) shot up $1.09 to $42.06 after the operator of the Marshalls and T.J. Maxx discount chains said its quarterly profit beat Street estimates by a penny a share. The S&P Retail Sector Index ($RLX) rose 6.3 points to 643.

Energy stocks finished lower as crude oil in New York settled down 19 cents to $85.38. Brent crude, traded in London, was off 88 cents to $108.19 a barrel. Gold (-GC) fell $6.90
was also lower in New York.

Technology shares came under pressure after Microsoft announced the departure of Sinofsky. Microsoft shares slid 90 cents to $27.09.

The euro debt crisis and the fiscal cliff weigh on markets
The market was held back in part by the continuing euro zone debt crisis. There were also those concerns about the "fiscal cliff" in the United States, and the debt crisis in the euro zone.

The fiscal cliff is a series of budget cuts and tax hikes that begin to take effect in the new year. Market participants worry that if no deal is reached to avoid going over the cliff, the economy could fall back into recession.

The Dow is down 2.6% this month, with the S&P 500 is 2.7%. The Nasdaq is off 3.1%.

Concerns over the fiscal cliff contributed to the Dow's and S&P 500's worst week since early June last week, with no sign of a bottom despite a drop of almost 3% over the past two weeks.

"The attention in the equity markets has shifted more noticeably to the possibility that the U.S. fails to properly handle the so-called fiscal cliff," Ari Wald, an analyst at PrinceRidge Group, told Reuters.

Wald said equities in developed countries have been outperforming U.S. stocks despite worries about the euro zone's financial health.

In other earnings news, AK Steel (AKS) shares fell  96 cents to $4.50 after forecasting a fourth-quarter loss.

But shares of Michael Kors Holdings (KORS) gained 43 cents to $51.01 after the fashion designer's company raised its outlook.

Charley Blaine contributed to this report.

Short hits from the markets -- New York close



Tues.

Mon.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0900%

0.090%

-18.18%

800.00%
5-year Treasury note 

0.620%

0.643%

-13.29%

-25.30%
10-year Treasury note

1.589%

1.611%

-5.75%

-15.07%
30-year Treasury bond

2.721%

2.745%

-4.56%

-5.82%
Currencies











U.S. Dollar Index

81.14

81.106

1.44%

0.77%
British pound

1.5878

1.5883

-1.60%

2.19%
(in U.S. $)

 








U.S. $ in pounds

£0.630

£0.630

1.63%

-2.14%
Euro in dollars

$1.27

$1.27

-1.94%

-1.91%
(in U.S. $)

 








U.S. $ in euros

€ 0.787

€ 0.787

1.98%

1.94%
U.S. $ in yen 

79.55

79.55

-0.31%

3.18%
U.S. $ in Chinese

6.25

6.23

0.33%

-1.13%
yuan











Canada dollar

$0.998

$1.001

-0.20%

1.76%
(in U.S. $)

 








U.S. dollar 

$1.002

$0.999

0.27%

-1.73%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,724.80

$1,730.900

0.33%

10.08%
(per troy ounce)

 








Copper (-HG)

$3.471

$3.468

-1.32%

1.02%
(per pound)

 








Silver (-SI)

$32.487

$32.522

0.53%

16.38%
(per troy ounce)

 








Wheat (-ZW)

$8.510

$8.5775

-1.56%

30.37%
(per bushel)

 








Corn (-ZC)

$7.235

$7.18

-4.27%

11.91%
(per bushel)

 








Cotton 

$0.7081

$0.707

1.06%

-22.76%
(per pound)

 








Coffee

$1.4600

$1.531

-5.59%

-36.42%
(per pound)

 








Crude oil (-CL)

$85.38

$85.570

-1.00%

-13.61%
(per barrel)










 

462Comments
Nov 13, 2012 7:24PM
avatar

Way more whine than cheese here today...

tsk, tsk, tsk.

Nov 13, 2012 7:22PM
Nov 13, 2012 7:10PM
avatar
If the Republican Party wantS to do something for the country and the ECONOMY, and consumer and business confidence,,,,, They can PASS the Tax cut for everyone making 250,000 or LESS 
RIGHT NOW !!!!!  That's 98% of ALL AMERICAN'S...... It's already Passed the Senate waiting for Boehner's BONE HEADS to get their ACT together.......

Would be a great stimulus for Holiday Spending......letting the middle class know their taxes are not going up....

THERE IS NO GOOD REASON TO WAIT........NONE!!!!
Nov 13, 2012 7:01PM
avatar
53% of polled voters blamed the fiscal cliff on Republicans.  10% blame both equally.  If the fiscal cliff isn't fixed, the Republican party will bare the brunt of the voters' wraith.  Ignore the voters at your risk.
Nov 13, 2012 6:55PM
avatar
Late gloom kills rally !  You AIN'T SEEN NOTHING YET !  Get ready for the worst retail holiday season since the Great depression ! Consumer Confidence is at a all time high according to the SPIN and the PRESSTITUTE MEDIA !  TAKE YOUR MONEY AND RUN !
Nov 13, 2012 6:50PM
avatar

Last novermber was bad too

stocks have gone up faster then they should have

dont use credit , live within your budget

there will be a rush of spending for the holidays

 

hurricanes dont help

Nov 13, 2012 6:40PM
avatar
None of the events that have drove stock prices down have or will ever happen. This isnt a earnings game anymore butt only rumor and manipulated driven.
Nov 13, 2012 6:38PM
avatar
This is all a manipulating move on Wall Streets part to take away investor gain for the year. Remember all they have to do is beat a CD and thats all that they will ever show. They could care less whats happenning in the economy because they are money driven and investors are there pay day!!
Nov 13, 2012 6:32PM
Nov 13, 2012 6:31PM
avatar
YOU AINT SEEN NOTHING YET, JUST WAIT UNTILLTAX FOR OBAMA CARE KICKS IN. 
Nov 13, 2012 6:30PM
avatar

Obama posted 6,000 regulations after the election! and he LIED and said he didn't! most are on cheap energy drilling like shale and coal and his great OBAMACARE! this is what people called LIES by Romney! it was true! you people who aren't left wing socialist voted for 4 more years of this again! what the hell is wrong with you? thanks to the left wing media YOU believe all Obama's LIES AND FANTASY LIBERAL BS! you get what you voted for! wait for middle of winter east coast! see what you got with the hurricane? expect more

shortages and high energy prices thanks to your messiah green guru Obama and left wing democrats! here in the south we'll be fine!

oh and NBC laid off 10,000 today! NOTHING BUT CRAP! the Obama Network of Propaganda! oh BIG UNIONS AT THE WHITE HOUSE

TODAY! HOW'S THAT WORKING OUT FOR YOU ALL YOU POOR AND BLACKS AND MIDDLE CLASS?

Nov 13, 2012 6:26PM
avatar
Romney's "mistake" was saying that he'd create 25 million new jobs....b.o.'s deadbeat base doesn't want jobs, they want handouts
Nov 13, 2012 6:24PM
avatar

rfect Quote

Some people have the
vocabulary to sum up things in a
 way that you can quickly understand them.

This quote
came from the Czech
Republic. Someone over there has
it figured out. It was translated into
English from an
article in the Prague newspaper Prager
 Zeitungon:
 

"The danger to America is not Barack Obama, but a
 citizenry capable of entrusting a man like him with the
Presidency.

It will be far easier to limit and undo the
 follies of an Obama presidency than to restore the
necessary common sense and good judgment to a
depraved electorate willing to have such a man for their
president.

The problem is much deeper and far more
 serious than Mr. Obama, who is a
mere symptom of what
ails America.

Blaming the prince of the fools should not
 blind anyone to the vast confederacy of fools that made
him their prince.

The Republic can survive a Barack Obama, who is, after all, merely a fool.

It is less likely
to survive a multitude of fools, such as those
who made him their president."

Nov 13, 2012 6:24PM
avatar
Did anyone really believe Home Depot was going to shoulder the entire market all day ?HD is going to have strong earnings for the next month or more because of the north east storms.A week from now everybody will show strong earnings for a day or two.The spinners are running out of tooth picks that have held up this anvil of a fantasy market for WAY to long.It's good to see the RED-ality setting in.
Nov 13, 2012 6:23PM
avatar
Stock market , is a rich man's rigged game... Buy Silver ...
Nov 13, 2012 6:21PM
avatar
More knee jerk reaction.  It is in part Wall Street, pie in the sky corp projections that are wrong, spin doctor BS and ignorance that makes this whole "watch the stock market crap" a crock.  But we are a knee jerl society as a whole no matter what your affiliation.
Nov 13, 2012 6:20PM
avatar
Sadly, it made no difference who won the election. Republicans AND Democrats sold out America and the middle class decades ago. What we have today is the merger of state and corporate power, which by definition is Fascism. Wall St. owns Washington. Bernanke's zero percent  interest rate fiasco (to fight deflation) has led to 9% annual inflation (by 1992 standards) and only benefits the banks.  We keep losing jobs about 30,000 a month (population growth) and the politicians remain mute. The only way out is to tariff cheap imported goods produced with slave labor, and bring back the 20-30 million manufacturing jobs that have been lost. Alas, you will NEVER hear a politician from either party talk about this let alone take action as this would cut into the profits of their benefactors.
Nov 13, 2012 6:18PM
avatar
Prediction: 1 year from now, the Dow will be at -11494.   That's right, I said the Dow will be in the negative.  Wanna know how we get there?  Very simple.

There are 5 trading days in a normal week, and about 50 weeks of trading per year.  In the 5 trading days since the election, the Dow is down about 485 points.   If we extrapolate this number out, with the Dow falling 485 points per week for 50 weeks, it will drop a total of 24250 points.  The Dow is at 12756 right now, so once it loses 24250 points, we'll be at a negative 11494.

How is this possible, you might ask.  Well, you've seen the evidence for yourself.  The math is spot on.  So the only weakness in this argument might be the methodology.  Ladies and Gentlemen, let me assure you, the methodology is sound.  In fact, it's the exact same model climate scientists use to predict global warming.
Nov 13, 2012 6:16PM
avatar
Slimeball sucker Rally's imminent...don't fall for these greaseball carsalesmen traders.
Nov 13, 2012 6:16PM
avatar

How is that community organizer working out for you idiots that voted for him again?  There is some real hard heads out there, don't seem to catch on very fast.

Hold his feet to the fire, no tax increases just major cuts to social programs is the only way to get out of this mess.

Sorry forgot to mention Joe I have no clue Biden.  Now there is an idiot looking for a village.

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