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)










 

440Comments
Nov 13, 2012 8:59PM
avatar

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.

Nov 13, 2012 8:58PM
avatar

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.

Nov 13, 2012 8:52PM
avatar

"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.

Nov 13, 2012 8:46PM
avatar

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.

Nov 13, 2012 8:39PM
avatar
JK    I CAN SEE YOU'RE IN PAIN,  AND I REALLY LIKE SEEING YOU SUFFER........LMAO......

PRESIDENT BARACK HUSSEIN OBAMA ....... IS YOUR PRESIDENT FOR 4 MORE YEARS...!!!!!!
Nov 13, 2012 8:38PM
avatar

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.

 

 

Nov 13, 2012 8:36PM
avatar

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.

Nov 13, 2012 8:16PM
avatar
JK,

JETHRO, GET ELLY MAY TO EXPLAIN IT TO YOU......
Nov 13, 2012 8:11PM
avatar
There will be no more rallies this year. The game right now is take away this years gain as soon as possible.
Nov 13, 2012 8:07PM
avatar
JK said: I HOPE ALL YOU MINORITY IDIOTS HAVE A SHI-Y CHRISTMAS,THAT IS IF YOU EVEN HAVE THAT.
==============================
LOL........YOU and your wacko RACIST TEA PARTY Friends were put in your place on Nov 6th......ARE YOU IN DENIAL??????  YOU LOST.....YOU LOST.......YOU ARE THE MINORITY......YOU ARE THE MINORITY.......YOU HAVE BEEN PUT IN YOUR PLACE......

JK.....HAVE ONE OF YOUR SMARTER FAMILY MEMBERS EXPLAIN IT TO YOU...........IF YOU HAVE ANY.....

Nov 13, 2012 7:59PM
avatar
The "little guy" (sometimes known as "consumer") on the street is reluctant to spend money due to the anticipated devaluation of the dollar's value by QE3.  Way to go Federal Reserve Bank .  .   .     .
Nov 13, 2012 7:57PM
avatar

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.

Nov 13, 2012 7:39PM
avatar

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. “

Nov 13, 2012 7:34PM
avatar

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.

 

Peace.

Nov 13, 2012 7:32PM
avatar
Headlines:       U.S. to overtake Saudi as top oil producer: IEA by 2017........


Obama has been SOOOOOOOOOOOOOOBAD for the Oil Industry.........LMAO
Nov 13, 2012 7:25PM
avatar
The two-party system has created a monster.  Political parties are like corporations.  They are fictional entities without conscience or intelligence.  Short-term personal gain is the order of the day.  Corruption runs amuck.  Courage and honesty are hard to find.  George Washignton was right in his Farewell Address - Beware of political parties. 
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.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

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.

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min
Sponsored by:

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 shed less than a point, ending the week higher by 1.3%, while the Dow Jones Industrial Average (+0.1%) cemented a 1.7% advance for the week. High-beta names underperformed, which weighed on the Nasdaq Composite (-0.3%) and the Russell 2000 (-1.3%).

Equity indices displayed strength in the early going with the S&P 500 tagging the 2,019 level during the opening 30 minutes of the action. However, ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Sponsored by:

VIDEO ON MSN MONEY