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 11:08PM
avatar

That last spread sheet equation was a doosey. We'll see how it does tomorrow.

 

Remember: Think globally, act locally. C-YA !!!

Nov 13, 2012 11:01PM
avatar

Clinton Lewinsky

Clinton Benghazi

 

Obama KerryRice (Christ)

 

Where are the Obummers who voted last week?

Nov 13, 2012 10:59PM
avatar

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!

Nov 13, 2012 10:55PM
avatar

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

                                                                                       zzzzzzzzzz

                                                                                             zzzz

                                                                                                z

Nov 13, 2012 10:51PM
avatar

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)

Nov 13, 2012 10:49PM
avatar

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.

 

DO YOU?

Nov 13, 2012 10:48PM
avatar

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

Nov 13, 2012 10:48PM
avatar
Another BO-DUMBO day for the markets!
Nov 13, 2012 10:48PM
avatar

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... 

Nov 13, 2012 10:40PM
avatar
1 Classic Lady
IF YOU HAD MY RESOURCES
------------------------------------------------------------------------------------------
Not possible.... They don't allow mobile homes in the county that I live in....
Nov 13, 2012 10:28PM
avatar
So Togs- you got any 'pocket change' to invest in Jamaica's new casino ventures? It's not so bad to move a little money off shore.
Nov 13, 2012 10:25PM
avatar
HEY WHAT IS UP WITH OUR GENERALS these days???

I smell a new show for TLC......Band of Brothers Meets Jersey Shore....

Huh? Whaddya think box?  Can you market that?

Nov 13, 2012 10:18PM
avatar

Some times is better then NO TIMES....In My Book.

And Early Times....Can get you through sometimes?

Nov 13, 2012 10:14PM
avatar

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.

Nov 13, 2012 10:13PM
avatar
sick of where this country is heading

I tell you what I am sick of........Is people like you that have no clue to what the TRUTH IS !!!!!!!!!

You act like most of the people on WELFARE in this country are able bodied and can WORK,  YOUR REALITY is SO FAR FROM THE TRUTH !!!!!!!!!!!!!!!!!!!!!!!!!!
 
 78% of All Americans that GET WELFARE are NOT ABLE BODIED,  DID YOU KNOW THAT?   They comprise, the elderly, handicapped, or KIDS......MOST ARE SENIORS !!!!!!! on Medicaid, and food stamps., AND POOR SENIORS IN NURSING HOMES...........Another HUGE PERCENTAGE ARE THE WORKING POOR who make LOW WAGES.....
IN SINGLE DIGIT'S ARE AMERICAN'S THAT ARE THE TARGET OF YOUR RANTS.......WAKE UP !!!!!!!!!!        YOU HAVE NO CLUE TO THE REAL AMERICA !!!!!!!!!!!!!!!!   YOU HAVE BOUGHT INTO THE GOP AND FOX NEWS PROPAGANDA FOR RATINGS AND VOTES.....

DO SOME RESEARCH AND GET INFORMED ..............YOU AND PEOPLE LIKE YOU MAKE ME SICK !!!!!!!!!  
Nov 13, 2012 10:07PM
avatar

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.?

avatar

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.

Nov 13, 2012 10:03PM
avatar
Classic Lady,

I WOULD LIKE TO HAVE ALL OF YOUR MONEY........TO GIVE TO CHARITY............WELL YOU MIGHT HAVE ENOUGH TO FEED THE LOCAL SPCA FOR A DAY.....BUT SOMETHING IS BETTER THAN NOTHING...
Nov 13, 2012 10:03PM
avatar

What happened to my post about, overturning rocks.....And opening up drain pipes...

 

Wasn't being mean or vulgar.....Just a little truth about some commenters.

Nov 13, 2012 9:59PM
avatar
No.....I just find it STUPID when someone comes on a Financial Forum/Blog and accuses others of making Socialist comments..
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