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)










 

441Comments
Nov 27, 2012 10:43AM
avatar
Someone at MSN slipped up!... they are allowing posting again!
Nov 23, 2012 5:28PM
avatar
And, a great big Merry Christmas to all from Santa Obama.
Nov 19, 2012 9:42PM
avatar
What we had today was an oversold bounce and a nice one at that....Manipulators had no choice but to hide, at least for a day....Noticed the village idiot was out of the country? Was it a coincidence? You decide...Tomorrow is another day though...We will see if we can follow through.
Nov 19, 2012 2:54PM
avatar
Has everybody given up posting or is there another board that you guys are using?
Nov 15, 2012 10:20PM
avatar
WE Better  find  areason  to  impeach  this  so called  president  before  he  takes  us  all  down.
Nov 15, 2012 10:08PM
avatar
ANOTHER day of  mkt.NOT  liking obummer  election
Nov 15, 2012 9:10PM
avatar
Well, sadly enough the Obummer selloff continued today...Bad economic news of course didn't help at all...We were able to close the gap a bit before the close but who are we fooling, it was another horrible day for most Americans and not a bad day for most scumbags here on the floor....Like one of these manipulators put it: Thank you mr. president...Sad.
Nov 15, 2012 6:18PM
avatar
Hi_Comrads

>>>>>>>>>>>>>>>>>>>>>>IT'S WAR TIME<<<<<<<<<<<<<<<<<<<<

---------------------------------------------------------------------------------------------

Hey Putz.... Everybodies over on the other message board.

Didn't you get the invite?  Heh, Heh, Heh

Nov 15, 2012 2:41PM
avatar
Should I play Rashad Jennings or Willis McGahee?
Nov 15, 2012 1:00AM
Nov 14, 2012 11:39PM
avatar
1 Classic Lady
STRYCHNINE     HAVE SOME
-----------------------------------------------
I get a kick outta this when you say it because actually I have probably had some...
Seems the wells in Nairobi were contaminated with all kinds of nasty chemicals and hard metals.
Of course, those pesty guys I was working for at the time didn't mention that for a few days....
Such Jokesters!
Nov 14, 2012 11:31PM
avatar

TOG!

Where were you earlier, today?

Your input was sorely missed!

Nov 14, 2012 11:26PM
avatar
1 Classic Lady
DO You know what type of regulations  there are for the importation of pharmaceutical goods into the United States?
----------------------------------------
Importation? You mean from foreign based companies?
Have you become a CITIZEN OF THE WORLD NOW?
Sweet holy Jesus!
Classic Lady, World Citizen!
I'm pissing myself laughing so hard right now!
Nov 14, 2012 11:22PM
avatar
Fu crzy///// we need a revolt or a recount are u crazy or just ben drnkin ??
Nov 14, 2012 9:40PM
avatar
Classic:  Nuclear power plants have only ever been built using federal subsidies, and to operate them in a cost effecting manner required legislation that capped their potention civil damages.
Nov 14, 2012 9:36PM
avatar

Stric:  Let's not forget about the support government provide with respect to educating their workforce and moving product to market.  Not to mention the vigorous defense of patent rights.

Nov 14, 2012 9:28PM
avatar
1 Classic Lady
 Let's just do the drug sector, they other  fall under more regulations than anyone else and exist despite the federal government.
 Merck ,PFIZER,BAYER,ABBOTT,J+J ,P+G, McNIEL,NATROL,FLORA,  You GOT the drift.
---------------------------------------------------------------------
I suppose that Guatamala is giving them billions in subsidies?
Nah...it's the Chinese medicare system that keeps them all proped up isn't it?
Or is it the Bolivian patent offices that PROTECT them from infringement?
 
whoops.... looks like it ain't gonna be the drug companies.....
Nov 14, 2012 8:53PM
avatar

Crazy:  You mean like Chris Christie?  If he tells truth, and it's not to your liking.. is that betrayal?  Or are you interested in a politcal goal regardless of the truth?

 

You embody the fringe that couldn't handle that the polls were against Romney the whole time, that America could never connect with him, and most of all, that will eat their own young at the slightest movement toward dissent from the hard party line.

 

I'm curious.. what happens now that the party is softening it's stance on immigration?  Are the old hardliners going to disappear as flip-floppers, or is there going to be an actual admittance that the line formerly taken was too harsh?

 

And will that accompany a letter of apology to Rick "Oops" Perry for crucifying him on due to a moderate stance on immigration?

Nov 14, 2012 8:49PM
avatar
HEY EXCEO.....

" Our number one priority is to make Mirage Guy a One Term Poster"  Ha ha ha ha ha....

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[BRIEFING.COM] Just like the geopolitical environment, things could have been better today for the stock market and they could have been worse.  They were worse in the early going as the major indices backpedaled quickly at the start of trading.  The ostensible catalysts for the opening retreat were geopolitical concerns over Israel's ground assault in Gaza and the troublesome diplomatic dealings in the wake of Malaysian Air flight MH17 being shot down over eastern Ukraine last ... More


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