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 14, 2012 10:59AM
avatar

Almost 80% of us, 3500+ that took the poll.

Feel they will be paying more in Taxes in 2013 ??

Apparently not everyone is starving to death...?

Nov 14, 2012 10:56AM
avatar
The bitterness is very apparent.......How sad.
Nov 14, 2012 10:54AM
avatar

The point Steve....Which is indirectly aimed at the Obama Admin...

Is that Companies/Corporations are not spending here....

And now they have Obama "solely" to blame....And no longer Bush..

 

It's basically all that some Republicans or Conservatives have left, And eventually the World or at least the citizenary of the U.S. will pass them by...

Nov 14, 2012 10:45AM
avatar
It's a constant risk vs. reward situation.  The purpose of business is NOT to create jobs, it's to create profit.  Job creation occurs naturally when businesses grow and expand.  There's plenty of cash sitting on the sidelines right now.  That cash will be invested as soon as conditions are reasonably favorable to where the reward justifies the risk.  Right now, the initial risk is too high and the possible rewards are too small.   As of now, you'd have to be in very strong position to expand and hire, since we don't even know what the tax structure is going to look like 3 months from now, let alone 3 years from now.  Obamacare is coming, and its effect on many small business is still uncertain.  With little definitive energy policy in place, those future costs are more uncertain than ever.    And the policies that are definitive are expected to cause power costs to increase 30% in some areas (Cleveland is the latest example) - this is not very conducive to expansion and job creation.  The main problem of uncertainty has not been addressed over the last 4 years.
Nov 14, 2012 10:44AM
avatar

What a nice even start to the DOW today....

Wonder who's turn it is in the barrel...??

Nov 14, 2012 10:42AM
avatar
Too Sick 2 Swag
Businesses are making profits. And spending too! Just not here in the states.
------------------------------------------------------------------
Right.... let me guess...
too many taxes?
big government?
unions?
too many regulations?
obamacare?
47 percent?
too many restrictions?
Benghazi?
economic uncertainty?
fiscal cliff?
 
Gee... Sounds like a bunch of EXCUSES to me....
 
Nov 14, 2012 10:38AM
avatar
"WASHINGTON (AP) - President Barack Obama is lobbying business and labor groups to support $1.6 trillion in new revenue to avoid an impending fiscal cliff, telling the two sides he remains committed to requiring the wealthy to pay more in taxes..."
$$$$$$$$$$$$$$$$

I'll re-iterate that the idea of higher taxes alone is not enough or will fix what ails us.

Administrators, lawyers, bankers, politicians and business inheritors all are well-off or rich but not by effort, more like by station.

Families, labor & small business are suppressed and impoverished. Flat out... those who take have taken too much and MUST give back. You say- one issue at a time but while Congress took six months off, America was impaled on what BIG has stuck us with-- debt and NO job recovery. It is only FICTION that people are lazy and cannot find work. It is TRUTH that a tier class separation is behind it and blockading has destroyed us.

WHY are there no bankers in JAIL? WHERE does the money come from that is used to puff the markets up in the morning and are recalled after 3pm? WHERE are the lenders that are critical to the credit and housing mess corrections? Bankers are not lenders. Harvard U cannot produce a person capable of fixing what bankers have abused. Are we to WAIT on 12/21/12 and be "surprised" or are YOU going to do more than 'propose'? We want SOLUTIONS. If Congress is stalemated by that Norquist Pledge, arrest those who signed it and send them to GITMO. We don't tolerate terrorism in America, even if it's in Congress.

Hard work isn't paying. Corruption is. If you want Americans to swing over to the dark side and fry up some grubbers and inheritors... so be it. If you would prefer more integrity... tell Boehner to DO IT NOW and tell McConnell to resign.

Beginning IMMEDIATELY, a list of lobbies who are in contact with elected Officials is to be put on major media websites with blog (not social network gimmick) access for comments. Time to tell members of Congress who are not sweating out progress, where they can go and how fast. I PAY TAXES on 70% LESS INCOME than I once had. No one has helped us in 4 years now. It isn't about 47%, its about deadbeats who take and have ruined. DO YOUR JOB, DESTROY WHAT DESTROYS AMERICA.
Nov 14, 2012 10:11AM
avatar
stric,

Businesses are making profits.  And spending too!

Just not here in the states.

That's kinda the whole point......

Nov 14, 2012 9:43AM
avatar
Brutus625
Did he just call the current POTUS incompetent?
--------------------------------------------------------------------
I guess that's one way to look at it... an incredibly short sighted and narrow minded way but a way none the less.
 
What if he meant it as:
The economy is injured and the "job creators" are the ones making the excuses?
Lord knows.... They've been given every "tool" in the book over the last 10 years (tax breaks, NAFTA, stimulus, no bid contracts, glass stegal) and just look at what a wonderful job they did with them!
Nov 14, 2012 9:14AM
avatar
I hear some shovel ready jobs are finally here.  Delivered by Hurr. Sandy.
Nov 14, 2012 9:10AM
avatar
Mike Tomlin, Steelers head coach:  "The injuries are what they are. We’re not looking to make excuses. Excuses are tools of the incompetent."

Did he just call the current POTUS incompetent?  Obama sure has used a lot of "tools" over the last 4 years.  He could learn a thing or two from Tomlin.

Nov 14, 2012 7:34AM
avatar
Wall Street is dead set on only hearing and reacting to bad news. It is not even interested in anything else till this years gain is gone. It is in its manipulation mode and nothing wil change it.
Nov 14, 2012 3:30AM
avatar
This goes to geaux4it "Romney's "mistake" was saying that he'd create 25 million new jobs"..Romney's mistake was not saying this I'm not going to give you "A" Obama phone I'm going to give you TWO Romney phones and a 32 inch flat screen TV so the bankers can keep control of YOU sheeple out there...to qualify you have to watch THE US govenment channel for 2 hours a day...people would, I mean the Sheeple would do it.
Nov 14, 2012 2:57AM
avatar
Late-day gloom??? Heck, it's been gloom since last Tuesday. I keep watching what anyone with an IQ above 5 could see. No one wants to play with Obama anymore except the FSA (Free Shite Army). Close businesses, layoff people, reduce full timers to part-timers, move more companies offshore, reduce pay and benefits. Woo-whooo, now everyone is equal....equally poor. Change you can believe in.
Nov 14, 2012 12:24AM
avatar

The Shock Doctrine is a book by Naomi Klein that describes a "disaster capitalism" strategy used by wealthy and powerful people to take advantage of crises -- even causing crises (fiscal cliff) -- to herd people into accepting "solutions" to those crises that really just enrich the 1 percent at the expense of the rest of us.

 

In times of crisis (real or perceived, fiscal cliff) the public is in a state of shock, distracted and ready to grasp at straws to get out of the panic. This is the perfect time for "serious people" to come in and offer pre-planned "solutions." These solutions usually involve privatizing public institutions and wealth, cutting public services, cutting taxes on the rich, seizing property, lowering wages and pensions... well, just look at Europe's "austerity" and you get the picture.

 

This shock-doctrine disaster capitalism model (fiscal cliff) has become standard practice. We see this happening over and over again: Crises occur or are manufactured, the media whips people into a panic, and then the "solution" is introduced. The solution involves a "reform" that transfers wealth or institutions into a few private hands.

 

Read The Shock Doctrine!

 

Nov 14, 2012 12:09AM
avatar

Obama has added 5 trillion dollars to the national debt which is now over 16 trillion. Your great grandchildren won't be able to put a dent in this if they can find job...lol Obamacare will cause health insurance premiums to skyrocket. Businesses will get rid of full time jobs so no healthcare insurance will be offered.

More and more jobs are being called "contract jobs" or 1099. It's a form of outsourcing jobs to americans who will get no benefits of any kind. I have seen this happen with many companies including the one i worked for. The days of employee benefits are over.

Americans will have to pay a government tax penalty for not having health insurance. This is a recipe for disaster that Obama has created and for you morons who voted for Obama, you deserve what you get.

Nov 14, 2012 12:05AM
avatar
Politicians are in the pockets of US corporation so the laws are written to benefit them NOT the american people.  15% of all americans on food stamps, taxes rising, full time jobs disappearing due to Obamacare, food prices rising, fiscal cliff coming.  I wouldn't have a dime invested in the stock market because it's going to collapse and worst than before.  No reason to have any money in the bank because of zero percent interest and bank charges just to have a simple checking account.  Take your money out of the bank before it's too late.
Nov 13, 2012 11:53PM
avatar
ONE DAY OBAMA'S  SKELETONS WILL COME OUT...................she wrote.......................
 
OH Yeah???????????????
 
they all came out and VOTED for him....
 
THEY DON'T WORK FOR A LIVING, THEY VOTE..............
Nov 13, 2012 11:33PM
avatar

So Gotta go!! Hear to BO-DUMBO-CARE;

BO-DUMBO promised you could keep your doctor, but did not promise you would keep your job!!

Papa John’s Pizza to Cut Worker’s Hours Due to Obamacare

 

■Welch-Allyn: the well-known company that makes medical diagnostic equipment, plans to cut 10% of it’s workforce over the next 3 years, or about 275 people.  If you’ve been to the doctor anytime in the last decade, you probably saw “Welch-Allyn” stamped somewhere on the tools your doctor used to check your blood-pressure, temperature, or many other areas.

 ■Dana Holding Corp:  those of you in the auto parts industry have heard of them.  This Ohio-based company estimates at least a $24 million dollar hit due to Obamacare, and numerous cuts in workers will be made in the next couple of years.

 ■Stryker: one of the biggest manufacturers of medical devices (including many of the beds you’ve seen in our area hospitals) will close their facility in Orchard Park, New York, dropping 96 jobs, and as many as 1,170 worldwide.

Other companies planning Obamacare-related cuts include:

Smith & Nephew – 770 layoffs

 Abbott Labs – 700 layoffs

 Covidien – 595 layoffs

 Kinetic Concepts – 427 layoffs

 St. Jude Medical – 300 layoffs

 Hill Rom – 200 layoffs

 Beyond the complete elimination of a significant number of American jobs is another looming problem created by the health care law – a shift from full-time to part-time workers. But it doesn’t stop there.   Hundreds of companies, due to the mandates of the law, will be forced to reduce many full-time workers to less than 28 hours a week. In order to avoid paying millions in costly Obamacare penalties companies will have to reduce the hours of what are called “non-exempt” or hourly workers.  Kroger, the major store chain, reports these cuts to what is essentially part-time work, could affect tens of thousands of workers.

 

So this is what the nation voted for????

Nov 13, 2012 11:21PM
avatar

Republicans learned to live and save lives

 

Dems provide pillls to kiil it...........................

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min
Sponsored by:

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] The major averages punctuated a solid week with a subdued Friday session. The S&P 500 shed 0.2% to narrow its weekly gain to 1.7%, while the Nasdaq Composite (+0.1%) displayed relative strength. The tech-heavy index finished the week in line with the benchmark average.

Market participants went into today's session expecting to hear some new insight from Fed Chair Janet Yellen, who delivered the keynote address at this year's Jackson Hole Symposium. Unfortunately, the ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Sponsored by:

VIDEO ON MSN MONEY