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 9:53PM
avatar

People

DON'T YOU FIND IT FUNNY OR STUPID WHEN SOMEONE NAMED 4LOVEOFMONEY WRITES SOCIALIST COMMENTS??????????????

Nov 13, 2012 9:52PM
avatar
I LOVE OHIO STATE SENATOR NINA TURNER.......SHARP, ARTICULATE.....AND A WOMEN ON A MISSION....... I SEE GREAT THINGS IN HER FUTURE.... A FORCE .....
Nov 13, 2012 9:45PM
avatar

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. 

Nov 13, 2012 9:44PM
avatar
FEMA and Obamacare - Too big to succeed.
Nov 13, 2012 9:44PM
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JK...Kinda like that, Obumpa's respect for minorities....Us Whiteys are dwindling fast and we have to stick together; Not many left.
Nov 13, 2012 9:40PM
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Hey,   I just saw an ad for the remake of RED DAWN. The first one was about Russians trying ro destroy America. I think this one will be about an ELECTED OFFICIAL who brings America to its knees.  Staring Jesse Jackson Jr. as Pres. Obama. Hope you all go see it. If not just watch the news everyday as the plot unfolds.
Nov 13, 2012 9:39PM
avatar

FEMA and OBAMACARE have everything in common

 

THEY DON'T CARE.............................................................

Nov 13, 2012 9:37PM
avatar

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....?

Nov 13, 2012 9:27PM
avatar
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/region.  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 and the jobs.    Lets conslidate all the congress 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.

 

Nov 13, 2012 9:27PM
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.

 

To all the thumbs down.........you must also be thumb dumb...go back to school of life.

Nov 13, 2012 9:26PM
avatar

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.

Nov 13, 2012 9:20PM
avatar

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.

Nov 13, 2012 9:20PM
avatar
Why is it that gas prices were down to $3.19 a gallon before the election, but one week later they are $3.59? Was before the election manipulation or is now price gouging?
Nov 13, 2012 9:18PM
avatar

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.

Nov 13, 2012 9:18PM
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.

 

Nov 13, 2012 9:18PM
avatar

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.

Nov 13, 2012 9:15PM
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 9:10PM
avatar

"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.

Nov 13, 2012 9:07PM
avatar
Crazy8 said: You are wrong about us being put in our place.....you turds will self destruct in short order.All I can tell you is, enjoy your 15 minutes of commiefame.
================================
15 minutes????    You have to really be in denial.....It's almost 4 years now and 4 more is a DONE DEAL.........Hilary​ will run and win...

You need to come the realization Crazy.....The TEA PARTY is HISTORY........The Karl Rove, Koch Bros, Tea Party is DEAD......over, gone.....history....​..

To Extreme....THE TEA PARTY HAS BEEN DEEMED TO EXTREME FOR AMERICA.....What​ more evidence do you need then Nov 6th.......PRESIDENT OBAMA WON IN A LANDSLIDE,  THE DEMOCRATS PICKED UP SEATS IN THE SENATE,  THE DEMOCRATS PICKED UP SEATS IN THE HOUSE AND If it was not for redistricting the GOP would have lost the MAJORITY IN THE  HOUSE... THAT WILL HAPPEN IN 2014....
Nov 13, 2012 9:02PM
avatar
It is so easy for a depressed Republican to communicate on this feed and blame our current President for every bad thing that has ever happened to the U.S., the world, and the Stock Market during the past week.  This is so foolish it is incredible.  Mitt Romney would not have done any better.  He could not even begin to relate to the average economic problems that the normal person is experiencing today.  No millionaire ever could despite what they may tell us.  President Obama got reelected because both the Electorial College and the American public voted for him.  Accept it and get on with your life.  As far as the markets are concerned, they are going to change every day no matter which political party is in charge.  Stop being so negative and try supporting something for once.  If you don't like it here then leave.  If you think there is a better place to live then go.  The rest of us that have a more positive outlook on life would greatly appreciate it if you depressed Republicans would not use the Marketwatch site to air your negative attitudes.  Spare us and use site this to discuss economic matters not political ones. 
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