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.
(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%|
|Heating oil (-HO)||$2.9608||$2.9992||-3.31%||1.60%|
|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; 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.|
|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%|
|U.S. Dollar Index||81.14||81.106||1.44%||0.77%|
|(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%|
|(in U.S. $)|
|(in Canadian $)|
|(per troy ounce)|
|(per troy ounce)|
|Crude oil (-CL)||$85.38||$85.570||-1.00%||-13.61%|
So Gotta go!! Hear to BO-DUMBO-CARE;
BO-DUMBO promised you could keep your doctor, but did not promise you would keep your job!!
Papa John’s Pizza to Cut Worker’s Hours Due to Obamacare
■Welch-Allyn: the well-known company that makes medical diagnostic equipment, plans to cut 10% of it’s workforce over the next 3 years, or about 275 people. If you’ve been to the doctor anytime in the last decade, you probably saw “Welch-Allyn” stamped somewhere on the tools your doctor used to check your blood-pressure, temperature, or many other areas.
■Dana Holding Corp: those of you in the auto parts industry have heard of them. This Ohio-based company estimates at least a $24 million dollar hit due to Obamacare, and numerous cuts in workers will be made in the next couple of years.
■Stryker: one of the biggest manufacturers of medical devices (including many of the beds you’ve seen in our area hospitals) will close their facility in Orchard Park, New York, dropping 96 jobs, and as many as 1,170 worldwide.
Other companies planning Obamacare-related cuts include:
Smith & Nephew – 770 layoffs
Abbott Labs – 700 layoffs
Covidien – 595 layoffs
Kinetic Concepts – 427 layoffs
St. Jude Medical – 300 layoffs
Hill Rom – 200 layoffs
Beyond the complete elimination of a significant number of American jobs is another looming problem created by the health care law – a shift from full-time to part-time workers. But it doesn’t stop there. Hundreds of companies, due to the mandates of the law, will be forced to reduce many full-time workers to less than 28 hours a week. In order to avoid paying millions in costly Obamacare penalties companies will have to reduce the hours of what are called “non-exempt” or hourly workers. Kroger, the major store chain, reports these cuts to what is essentially part-time work, could affect tens of thousands of workers.
So this is what the nation voted for????
Republicans learned to live and save lives
Dems provide pillls to kiil it...........................
That last spread sheet equation was a doosey. We'll see how it does tomorrow.
Remember: Think globally, act locally. C-YA !!!
Obama KerryRice (Christ)
Where are the Obummers who voted last week?
I read that Mitt Romney made the Guinness Book of World Records last week.
He now holds the world record for losing the most homes states in a single election!
I like swamp coolers....I think they are neat, but sometimes make a lot of noise.
Think I'm getting tired of all the info...OMG zzzzohshidzzzzzz, snorklezzzzzzzz
Let's see- marketable shows that exploit stupidity ? Pick a channel !!
How's this for a new title:
MILITARY - C I A (CAUGHT IN the ACT)
Now that OmBummer has been re-elected...oups...nope...stole the elections, that Hillary is going downHill, that Rice is going to be SackCretary of Obamerica and John Skerry will be at the helm of the Hillitary...we just don't know yet if we have a functional government.
TOG - 4LOM
I see we had a visit from Scary Barry the Right Wing Fairy today....... and I MISSED IT!
Dang... I been saving up shidt to give to that boy.... Heh, Heh, Heh
Jamaica, Mon ?........No I didn't even kiss her...
For some funny reason I'm not real kean on investing in anything Caribbean..
Already fairly heavy on Boyd(BYD)Gaming..Used to be one of favorites in/out, but it's down right now.
Had others but kept coming back to byd,plus I gamble with or in their Houses.I call it hedging my bets.
Used to diddle with gaming equipment companies...Shuffle Master and IGT....
They are Okay, but timing is critical...
I smell a new show for TLC......Band of Brothers Meets Jersey Shore....
Huh? Whaddya think box? Can you market that?
Some times is better then NO TIMES....In My Book.
And Early Times....Can get you through sometimes?
Gave back $$$$$$$$ to Casino gods last night...
As usual Miss Lilly wins (at that one).
Couldn't even win a few bucks at Vet's club later...On pull-tabs/rpi-offs.
Licking my wounds today....And someone dancing around here today yelling Winner and calling me LOSER....fg'em.
Nope just repeating myself, because I was not paying attention...Sweet Geezus...dementia?
I had 2-3 last night, just cooling my jets.....Coffee or pop..
I thought we were done with Politics and Hate.....MOving on to something else.?
This ECONOMY WILL NOT GET BETTER, unless there are some fundamental changes in our government:
1) STOP paying lifetime benefits for part time politicians. Taxpayers don't get this, neither should politicians.
2) STOP the fiscal bleeding that is brought on by Welfare. Limit the amount of time any able bodied person can be a drain on society.
3) RE-IMPLEMENT the CCC. Any able bodied person on government assistance, should be made to earn their check.
4) SUSPEND the right to vote of anyone drawing on Welfare, until they are no longer a burden to the taxpayers. People that vote for politicians, based on promises of greater handouts, is a conflict of interest for the taxpaying public.
5) STOP oversees spending, when our own country's finances are in the RED.
6) RE-IMPLEMENT Government regulated pricing of Gas, Food and Health Care. These are the staples of a thriving economy. When greed forces taxpayers to spend their entire paycheck for staples, nothing is left to spur the economy.
7) FLAT 10% TAX RATE. No deductions, No Exemptions. If you earn $1.00, you pay your dime. If you earn $1,000,000.00, you pay your $100K.
8) 25% PENALTY TAX on ALL IMPORTS. If a product isn't built in America, make the people that don't care about putting their neighbor out of work, pay for it.
If these simple steps are followed, our economy will flourish. Without these steps, it will continue to flounder.
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Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The Dow Jones Industrial Average (+0.3%) continues to hold a slim gain while the Nasdaq (-0.4%) and S&P 500 (unch) have slid into the red.
As mentioned in our opening update, biotechnology has exerted significant pressure on the Nasdaq. The iShares Nasdaq Biotechnology ETF (IBB 255.17, -5.97) has widened its loss to 2.3% while the health care sector has extended its decline to 0.7%. Similar to health care, technology (-0.2%) is among the laggards while another ... More
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