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
Feb 8, 2013 8:58PM
avatar
Gee, is reality setting in?  Everone gets all excited when 150,000 jobs are created.  Then we hear 350,000 new unemployment claims were filed for a net loss of 200,000 jobs.  This has happend evey monh since Obama was fisrst elected and it's still happening.  But, you dimwitted, brainless morons reelected him, knowing full well there was absolutely no chance of a recovery with a democrat in the White House, so now you have him.  You must be ecstatic.
Jan 3, 2013 6:32AM
avatar
Market up 308 yesterday.....way to be current....LOSER.
Dec 5, 2012 5:32PM
avatar
Yes, we closed up 82, hope you noticed these scumbags last attempt to bring us down...At 1515 hrs or so they called for the last wave of selling and partially accomplished their goal...Oh well, what can you do when cheaters are running wild down here....At least we ended up barely, the S&P we mean, the most important index...Tomorrow will be a tough one, we can see it already. Later/
Dec 5, 2012 2:43PM
avatar
Remain cautious folks...At a few minutes before 1330 hrs manipulators started to do their thing, we will see how serious they are...Again, do not take anything for granted, too many crooks down here....More after the close.
Dec 5, 2012 1:28PM
avatar
We just rallied nicely but don't take it for granted...Be cautious still, like we said earlier, low volume and plenty of scumbags on and off the floor are never good news, in fact, they started dropping us a bit already and we still have about 3 and a half hours to go...Just be cautiously optimistic...More later.
Dec 5, 2012 11:50AM
avatar
Another uphill battle this morning, once again, low volume and plenty of manipulators bringing these markets down...A mirror image of yesterday's opening, up by over 50, the call came at about 1000 hrs and down we went...All in the red now....Another day where these scumbags will try to impose their will and manipulate as much as they can. Oh well, maybe this afternoon something positive can be done...The economy not helping and the village idiot's attitude hurting the country big time. More later.
Dec 4, 2012 6:08PM
avatar
Well, manipulators eventually got their way but it wasn't as bad as it could have been....Like we said on friday, after last week these scumbags would be out in force this one....We were able to keep things sort of under control today, do not know about tomorrow...More economic news the rest of this week,,,We will see.
Dec 4, 2012 1:28PM
avatar
We are trying to hang in there but at 1200 hrs scumbags called to accelerate the selling so we are starting to drop again...Oh well, these turds out number us all and with this low volume, not good news....Sad...More later.
Dec 4, 2012 11:31AM
avatar
Be very cautious this morning once again...Yes, we are up over 50 but it doesn't mean a thing...Very low volume and plenty of manipulators ready to pull the trigger, in fact, we just started dropping....Too many of these scumbags, hard to keep up....Be careful...More later.
Dec 3, 2012 7:06PM
avatar
Well, not a big surprise today after last week...Plus, very low volume, plenty of scumbags and above all, bad economic news....This economy is still hurting bad...Oh well, the market is at least hanging in there for now....We will see what happens tomorrow.
Dec 3, 2012 11:40AM
avatar
We opened higher this monday morning but didn't last long...Low volume, and bad economic news have turned things around; manipulators doing their thing and loving it...Of course it is still very early but things are shaping up not in a good way already....We will see how things go...More later.
Nov 30, 2012 6:15PM
avatar
Basically flat...Not too bad...Almost pulled it off but these scumbags got us at the end...Oh well....Get ready for next week, we don't think it will be too pretty....We will deal with it then...In the meantime had a great weekend all.
Nov 30, 2012 12:26PM
avatar
A few minutes before 1100 hrs the call for the first wave of selling came and we are all in the red by now....No real surprise after the last couple of days and the garbage incompetent Obummer is pulling...And to male things worse its friday...Oh well, more later
Nov 30, 2012 11:22AM
avatar
Last trading day of the week and we are hugging the flat line...Not too bad....However, manipulators ready for action and we are digesting the laughable fiscal cliff solution that came out of the WH...Taxes, taxes and more taxes, no spending cuts and more spending....Unfricking real....Never met liberal democrats that didn't love tax and spending....The market is hanging in there but for how long? Brace yourselves folks....The incompetent village idiot got reelected, now middle America will pay the price...More later.
Nov 29, 2012 6:28PM
avatar
We were able to hold...A positive day is a good day...We have volatile times ahead...Be very aware and cautious...Wall Street has its eyes on Washington and that is never a good thing....Lets hope for the best. Be careful tomorrow.
Nov 29, 2012 4:09PM
avatar
Last hour of trading and we still advise caution...At exactly 1500 hrs scumbags called for another wave of selling....Volume is terribly low; they will try to bring us down this last hour...Be careful.
Nov 29, 2012 11:43AM
avatar
Thursday morning after a 106 point gain yesterday...And we opened up about 60 points....Just two words...Be cautious...Manipulators not happy at all after yesterday and starting to take over slowly but surely...In fact, they just called for the first wave of selling of the day so we started to drop...Be careful today, things down here are not as good as they may appear...More later.
Nov 28, 2012 2:37AM
avatar

Yup many of us miss the Maket Dispatches...And Charley is writing a "short" column or Article on "Top Stocks" about once a day...

At least he's still around....Good guy and a Great Job on the "Dispatches". 

Nov 27, 2012 7:27PM
avatar
I hope Charley is enjoying a vacation and not left go. There are enough folks on the street. 
Nov 27, 2012 5:06PM
avatar
What happened to Charlie? Why are the Dispatches not being updated?
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