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%|
THE MOST STUPID THING WRITTEN........
Obama meets with Labor Bosses to discuss the FISCAL CLIFF......
It is like asking the DEVIL to kill the fire in HELL.
What do these BASTARDS (Labor Unions) know about ECONOMY...they only know about the EGOnomy.
I'm working late tonight and thought to share a few thoughts:
Well yes, the Republicans drove us into a ditch, but the Democrats are driving us over a cliff !
And we went ahead and elected a guy whose mantra was "FORWARD" !
But not to worry, Obama has said we'll be 'out of gas' before that !
Enjoy the rest of your night.
"If Republicans refuse to let tax cuts expire for the wealthy, Murray told ABC's "This Week," ''we will reach a point at the end of this year where all the tax cuts expire and we'll start over next year. And whatever we do will be a tax cut for whatever package we put together."
Ha, ha that works for the 85% of us that don't just pay just 15% on their earned income like the Romney's and other rich hedge fund owners. Once the Bush tax cuts expire on everyone anything to put them back for the middle class will be a tax cut and the Republicans won't be violating their devil's pledge to Norquist.
Just amazing to see the arrogant far right after the election. Of all the whiners , you guys take the cake.If you believe more than 20% what you hear on Fox News, I'm sorry for your lack of real world knowledge. For believing Carl Rove and friends, you have no excuse for being stupid.. He has always been a con man.Norquest fits the same label. I'm an old white guy like most of you, but you can stay ignorant and whine about every future election loss, or you can adjust to the reality of getting along with all kinds of folks, for all over the world. You do not know it yet, but u dodged more trouble this time because the economy will produce 10-12 million new jobs in next 4 years. Or, stay ignorant far righters and you can destroy our country by saying NO TO EVERYTHING, like you did the last 4 years. You cost us 2-4 million jobs during that absurd due
nothing but complain time.
Whose is going to be paying taxes, no work, no jobs = no tax base...maybe its time the big goverment needs to tie the tax revenue together with the number of goverment employees, congress and senators.. No tax revenue then the government starst to self trim ifself till it runs itself like a competent business.
So all the government employees, congress and senators, are tied to the government revenue stream, so there is no sitting on your asses like you have done for decades, You watch the American jobs get sold off to China, then you are out on the street too cause you let your tax base go for your area. That way rather than sitting on your duff, you are rewarded for keeping the general population and masses employed and you are watching over the country. Lets conslidate all the congree and senators into areas/regions, so we only need one for a region than all the deadbeats that can not even work together for the betterment of the country. They are at a impassee over the budget and have ignored it for years. If no one wants your cake like Hostess, you start trimming back the bakers, the cakes, and that icing you made that made you FAT. Everyone wants a sound, properous economy not one going off the cliff on your watch because you had no incentive but watch it go off the cliff while you were eating your Hostess cakes.
It is time for change, that ties sound economic principles to government, and a balanced budget, so their is a trickle down theory for each agency. We start with Capitol Hill, the angencies, and then the White House so they all taste what the average american sees. No revenue then their budgets shrink accordingly. We need some type of different thinking because what we have is not working but fattening alot of wide track people from sitting on their aces all day doing nothing. If they cared we would not be at the fiscal cliff, and the economy would not be in the state its in or end depending on your perspective.
Obamanomics - mmm, mmm, mmm.
He's coming after the middle class next, then he'll tax food stamps ten percent - the book of stamps will only have nine instead of the ten that we used to get.
Now that the election is over it actually mattered little who won in terms of ability to influence our economy and unemployment in the short run, 3-5 years. The debt level and its continuing rise, will require decades of difficult choices framed by math, accounting, science, and demographics. there are NO political solutions to our problems so dont let media or politicians dupe you into beleiving there is.
The poor,disadvantaged and needy will be the most dramatically impacted by the mess WE have let politicians sleaze us into.
Put quite simply, we are broke with no policy in place to start arresting our runaway debt and little likely hood that politicians will do what is necessary to turn toward stability and solvency- and sanity. They might lose their next election.
I am gathering data from my customers with which to make my 2013 projections. At present, none have indicated growth, expansion, any increases in capital spending, whispering layoffs, closing facilities. and taking a wait and see on how regulations, taxes and what appears to be a hostile admin affects their business.
I am following their lead, not the political rhetoric coming out of Washington, the media slants, nor bogus Wall Street analysis or phony government reports that are obviously constructed to hide the realities that will affect all of us.
Hey Republican's posters take NOTICE......!!!
Bobby Jindal REPUBLICAN Governor of Louisiana.......telling the GOP to be more Moderate and to quit acting like LOONEY'S..... "STOP BEING THE STUPID PARTY"
“We’ve got to make sure that we are not the party of big business, big banks, big Wall Street bailouts, big corporate loopholes, big anything,” Jindal told POLITICO in a 45-minute telephone interview. “We cannot be, we must not be, the party that simply protects the rich so they get to keep their toys.”
He was just as blunt on how the GOP should speak to voters, criticizing his party for offending and speaking down to much of the electorate.
“It is no secret we had a number of Republicans damage our brand this year with offensive, bizarre comments — enough of that,” Jindal said. “It’s not going to be the last time anyone says something stupid within our party, but it can’t be tolerated within our party. We’ve also had enough of this dumbed-down conservatism. We need to stop being simplistic, we need to trust the intelligence of the American people and we need to stop insulting the intelligence of the voters.”
Calling on the GOP to be “the party of ideas, details and intelligent solutions,” the Louisianan urged the party to “stop reducing everything to mindless slogans, tag lines, 30-second ads that all begin to sound the same. “
The only comment this rocket scientist would like to make is it looks like just under four million single women and Latinos can swing an election, but perhaps may not be able to avoid a fiscal cliff or keep people employed, or sustain a market rally.
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[BRIEFING.COM] The stock market capped the trading week with losses across the major averages. The S&P 500 fell 0.5% to surrender its weekly gain, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-0.9%) underperformed. The two indices posted respective losses of 0.8% and 0.6% for the week.
Equity indices were pressured from the get-go after several heavyweights disappointed the market with their earnings and/or guidance, which led to some broader profit-taking. After ... More
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