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%|
DON'T YOU FIND IT FUNNY OR STUPID WHEN SOMEONE NAMED 4LOVEOFMONEY WRITES SOCIALIST COMMENTS??????????????
You sound a little upset or nervous V L, and you should be. Your entitlements are going to get wacked or at least the duration of them. As far as 'fixing things ? I can only try and control my little corner of the universe (I'm ambitious) and well- You're not in it !
But ...............I can sell you some Mason jars for your 'backyard savings plan' - you're going to need them. Oh- and don't forget to wrap the money up in good heavy duty plastic or the bugs will eat it after you bury them.
FEMA and OBAMACARE have everything in common
THEY DON'T CARE.............................................................
Charley must have really celebrated on Veteran's Day...Way to go Charley..
I see a few of you had to go roll the rocks over and others opened the drain pipes.
GOMO...I would bet that about only 15-20% here understood your remark about HD shouldering the Market today ??
And a few, almost appear to be SORE LOSERS....?
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.
To all the thumbs down.........you must also be thumb dumb...go back to school of life.
You know V L ? I may have been wrong about you- because you have a gift for writing great fiction.
You see you can be self employed to get off government benefits.
You know... if we unionize everyone making less than $250,000 annually and go on strike, it would only take 2-3 days before the Elite were starving from a lack of eats.
That said, the Far Ultra Conservative Klan Evangelist Republican Southerners could hold out on pickle juice.
It is time for change, that ties sound economic principles to government, and a balanced budget, so there is a trickle down theory for each agency. We start with Capitol Hill, the agencies, 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.
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.
4LOM: You know I have faith, but I also believe in GRAVITY!!
That's why I've been working on a kind of 'Parachute' > Sorry-details are classified on a need to know basis- not that many here could understand it anyway.
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.
"If the U.S. government ends up careening off the "fiscal cliff," Republicans in Congress stand to shoulder most of the blame, according to a new poll released Tuesday. A majority of Americans said in a new, post-election poll that they do not expect President Barack Obama and members of Congress to reach an agreement to avoid the effects of the fiscal cliff, the combination of automatic spending cuts and tax hikes set to take effect at the beginning of the year. 53% of Americans agree, according to Pew Research Center...
It works like this, Republicans... it took a village to row your butts down the Nile as you took credit for all of our achievements. You administrated and delegated but you didn't actually DO- squat. The economy and state of the nation shows it. Like it or not... George W. Bush will end up on trial for a job poorly done and his dad won't because it's less costly for us to simply erase him from history. A trial will also take place for the Party of NO and special guest star Judge John "entities are people too" Roberts. Read me-- no New World Order, but there was certainly an Adverse Agenda. We're screwed. People will die destitute who worked harder longer and more relevant than most of you. It should occur to you that-- it is NEVER too late unless you are willing to die for your party because We the People WILL fix this before we lose this. America belongs to us all.
Want to show your aren't the garbage 53% of Americans (it would be higher but not everyone has a phone any longer) know you are? Collapse the stock markets. Destroy them. TAKE LOSSES and make it hurt. The cataclysm will level the playing field. It's winter. We will ALL go to work to help ALL of us survive it. We will dismantle your office towers and build glass roof farms, repair factories and light industrial shops. We will SHIFT to alternatives and use what's left of our oil and gas to help us. We will turn in fiat dollars and surrender false debt notes. We will recognize no business that does not have the Founder at the helm and no law "firm". We've got a revenue problem, not a budget problem. Work for free, give your stocks and options away and hire back EVERYONE. When you are forced to compete again, you will find the struggle invigorating.
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[BRIEFING.COM] The commodity complex was under pressure today as a stronger dollar index weighed on prices.
Dec gold pulled back from its session high of $1226.30 per ounce set in morning action and traded as low as $1214.60 per ounce, its lowest since January 2014. Unable to gain momentum, it settled 0.8% lower at $1216.50 per ounce, booking a loss of 1.2% for the week.
Dec silver fell to four year lows after trading as high as $18.49 per ounce in early morning floor trade. It ... More
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