Dow slumps 313 after Obama's re-election

Investors fear failure to fix the fiscal cliff will lead to recession. European stocks slump after ECB President Draghi says even Germany is weakening. Apple has fallen 20% since September. Bank and energy stocks fall. Oil and gold slip.

By Charley Blaine Nov 7, 2012 1:45PM
Charley BlaineUpdated: 8:32 p.m. ET

A day after President Barack Obama won a second term, stocks suffered their worst beating in nearly a year.

Late selling caused to the Dow Jones Industrial Average ($INDU) to finish down more than 300 points, its largest loss since Nov. 9, 2011. The blue-chip index ended the day below 13,000 for the first time since Aug. 2, and the major U.S. averages were all down at least 2.4%.

Bank stocks were the weakest sector in part because it's likely the Dodd-Frank financial reform bill will remain largely intact. In addition, Elizabeth Warren, a critic of many U.S. banking practices, won a seat in the U.S. Senate. JPMorgan Chase (JPM), a critic of bank regulation, was down $2.32 to $40.56. Health insurance stocks were lower because the  Patient Protection and Affordable Care Act Reform Act -- aka Obamacare -- is likely to stay in place.

Meanwhile, oil prices fell back sharply in part because of worries about global demand. Europe became a worry after European Central Bank President Mario Draghi said he expected no change to the weak eurozone economy in the near future. Worse, he said, the weakness has begun to affect Germany. European stocks immediately sold off -- and sharply, too. The dollar rose against the euro and British pound.

The Dow closed down 313 points to 12,933, its lowest close since July 26. The Standard & Poor's 500 Index ($INX) slumped 34 points to 1,395, its first close below 1,400 since Aug. 6. The Nasdaq Composite Index ($COMPX) dropped 75 points to 2,946, its biggest loss since Nov. 9, 2011.

Article continues below.
The Nasdaq-100 Index ($NDX) had fallen 68 points to 2,613.

And that brings us to Apple (AAPL), which represents some 17% of the Nasdaq 100's market capitalization and roughly 4% of the value of the S&P 500. The stock is off $22.20 to $558. That's down 20.9% from its intraday peak of $705.07. Selling in the shares accelerated this morning when the stock hit $564 -- 20% below that intraday high.

After the close, however, Qualcomm (QCOM), the big maker of chips used on mobile phones, forecast fiscal first-quarter sales and profit that exceeded analysts’ estimates as it increases production of its most expensive chips. Shares were up $4.78, or 8.2%, to $62.90 after hours after falling $2.25 to $58.12 in regular trading.

Crude oil takes a dive
Crude oil (-CL) in New York settled down $4.27 to $84.44 a barrel. Brent crude was off $4.36 to $106.71. One reason for the decline was the decline in coal prices and coal stocks, a reaction to the election.

The national average retail price of gasoline fell to $3.462 a gallon from Tuesday's $3.463, according to AAA's Daily Fuel Gauge Report.

Gold (-GC) settled down $1 to $1,714 an ounce. Silver (-SI) fell 37 cents to $31.66 an ounce. Copper (-HG) fell 6.5 cents to $3.441 a pound.

Interest rates fell as the dollar moved higher. The 10-year Treasury yield fell to 1.632% from Tuesday's 1.742%.
Energy prices -- New York close



Wed.     Thur.

Month chg.

YTD chg.
Crude oil (-CL)

$84.44

$88.71

-2.09%

-14.56%
(per barrel)











Heating oil (-HO)

$2.9621

$3.0529

-3.27%

1.64%
(per gallon)











Natural gas (-NG)

$3.5780

$3.6170

-3.09%

19.71%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.5889

$2.6989

-1.57%

-2.58%
(per gallon)











Brent crude 

$106.82

$111.07

1.08%

-0.52%
(per barrel)











Retail gasoline

$3.4620

$3.4630

-1.68%

5.68%
(per gallon; AAA)












A tough road ahead for Obama, Congress
Today's slump is reminiscent of what happened the day after Obama won the 2008 election. The Dow fell 486 points that day and 443 points the next.

The bottom line on the sell-off is Obama will get no honeymoon from his re-election. He and Congress face the potential that doing nothing about the fiscal cliff -- the witch's brew of tax increases and spending cuts due to kick in after the New Year -- will cause the economy to slide back into recession, as many economists claim.

Ratings agency Fitch Investors warned today that the U.S. probably would lose its AAA credit rating if the administration and Congress don't address the problem.


"The economic policy challenge facing the president is to put in place a credible deficit-reduction plan necessary to underpin economic recovery and confidence in the full faith and credit of the U.S.," a company statement said today. 


Is a rally forming?

Maybe. It's true that the Dow and the Nasdaq closed the day below their simple moving averages. That's a signal that the market is headed lower, and there was lots of chatter to that end today.


At the same time, the relative strength indexes for the Dow, S&P 500 and Nasdaq are all under 30. When these indicators drop below 30, that suggest the market overall is oversold and could be ripe for a rebound relatively soon.


In late May, the the RSI for the three indexes fell below 10. The market bottomed on June 4, with the Dow jumping about 12.5% up through Oct. 5.


That is, admittedly, is a technical view. What won't help markets are the riots today in Greece at the end of a two-day general strike called to oppose a €13.5bn ($17.2 billion) package of cuts demanded by the European Union, the European Central Bank and the International Monetary Fund in return for a financial lifeline to prevent the government running out of money.


Thursday brings the weekly report on jobless claims and the September report on the nation's trade balance. The key earnings report comes after the close from entertainment and media giant Walt Disney (DIS). Also reporting: Wendy's (WEN), Kohl's (KSS), Zipcar (ZIP) and Boingo Wireless (WIFI).

There may be a bounceback rally. Futures suggests the Dow will open 50 points higher, with the S&P 500 up 5 points and the Nasdaq-100 up 9 points.


A big, bad loss

This was a day when stocks that might have done well under a Romney administration were clobbered: defense, coal, oil and gas, health insurers, steel, banks and broker. And everything else seemed to run over with them.

One group that did remarkably well: gun makers as investors speculated an Obama administration attempt to regulate gun selling more closely. Sturm Ruger (RGR) jumped $3.04 to $47.68. Smith & Wesson Holding (SWHC) surged 91 cents to $10.37.

All 30 Dow stocks were lower, but 109 points of the index's loss was concentrated in five stocks: Caterpillar (CAT), IBM (IBM), Exxon Mobil (XOM), Chevron (CVX), and JPMorgan Chase. 

The best Dow performers, relatively speaking: Walt Disney (DIS), Wal-Mart Stores (WMT) and Johnson & Johnson (JNJ). The biggest percentage losers were Bank of America (BAC), JPMorgan and Hewlett-Packard (HPQ).

Only 28 S&P 500 stocks were higher, led by Tenet Healthcare (THC), JDS Uniphase (JDSU) and Time Warner (TWX). Coal-producer Peabody Energy (BTU), investment bank  Morgan Stanley (MS) and health insurer Humana (HUM) were the laggards.

Only six Nasdaq-100 stocks were higher, led by Netflix (NFLX) , News Corp. (NWSA) and medical-equipment wholesaler Henry Schein (HSICResearch In Motion (RIMM) and for-profit education company Apollo Group (APOL) were the laggards.

Research In Motion fell 82 cents to $8.24 after Pacific Crest Securities analyst James Faucette wrote that the company's BlackBerry 10 operating system would be 'dead on arrival" when it comes to market early 2013.

Short hits from the markets -- New York close



Wed.

Thur.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0900%

0.090%

-18.18%

800.00%
5-year Treasury note 

0.662%

0.744%

-7.41%

-20.24%
10-year Treasury note

1.632%

1.742%

-3.20%

-12.77%
30-year Treasury bond

2.821%

2.916%

-1.05%

-2.35%
Currencies











U.S. Dollar Index

80.867

80.843

1.10%

0.43%
British pound

1.5995

1.6000

-0.88%

2.94%
(in U.S. $)

 








U.S. $ in pounds

£0.625

£0.625

0.89%

-2.86%
Euro in dollars

$1.28

$1.28

-1.48%

-1.44%
(in U.S. $)

 








U.S. $ in euros

€ 0.783

€ 0.780

1.50%

1.46%
U.S. $ in yen 

80.13

80.39

0.41%

3.93%
U.S. $ in Chinese

6.27

6.24

0.52%

-0.95%
yuan











Canada dollar

$1.004

$1.008

0.40%

2.37%
(in U.S. $)

 








U.S. dollar 

$0.996

$0.992

-0.33%

-2.32%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,714.00

$1,715.000

-0.30%

9.39%
(per troy ounce)

 








Copper (-HG)

$3.4415

$3.506

-2.16%

0.16%
(per pound)

 








Silver (-SI)

$31.661

$32.034

-2.03%

13.42%
(per troy ounce)

 








Wheat (-ZW)

$8.940

$8.770

3.41%

36.96%
(per bushel)

 








Corn (-ZC)

$7.4425

$7.410

-1.52%

15.12%
(per bushel)

 








Cotton 

$0.6983

$0.701

-0.34%

-23.83%
(per pound)

 








Coffee

$1.5120

$1.506

-2.23%

-34.16%
(per pound)

 








Crude oil (-CL)

$84.44

$88.710

-2.09%

-14.56%
(per barrel)










 

1653Comments
Nov 7, 2012 8:46PM
avatar

for ALL OF YOU REDUMBICANS, from newt ginrich himself whom I dont like.  huge supporter of Romney, read this!  this is a THROW BACK:

 

Newt Gingrich’s positive campaign expired today. It was pronounced dead at 10:12 AM, Monday morning, after reports surfaced that the candidate accused rival Mitt Romney of amassing a fortune off the misery of laid-off workers.

The fatal moment came after Gingrich was asked by reporters whether he should return some of his reported $1.6 million in consulting fees from housing giant Freddie Mac in light of the 2008 subprime mortgage collapse.

“I would just say that if Gov. Romney would like to give back all of the money he’s earned from bankrupting companies and laying off employees over his years at Bain, that I would be glad to listen to him,” Gingrich in New Hampshire after a town hall. “I’ll bet you $10, not $10,000, that he won’t take the offer,” he .

Gingrich has up to this point made an ostentatious display of his positive campaign, repeatedly pledging to against Romney and other rivals even as they pile on him in debates, ads, and public statements. But the slap at Romney’s time at Bain, a general election vulnerability that’s rarely come up in the more investor-friendly Republican primary, suggests he may be departing from that strategy.

 

The whole point to the story, if he did this which he did and admitted it, then who are you to him???

Nov 7, 2012 8:46PM
avatar
ACTUALLY TIWIT         RASMUSSEN HAD IT TOO CLOSE TO CALL
======================================

ACTUALLY CLASSIC LADY,  RASMUSSEN HAD ROMNEY AHEAD IN SOME SWING STATES LEADING UP TO THE ELECTION  AND HAD FOX VIEWERS THINKING HE HAD A CHANCE IN PA, LOL      AND ALL THEIR POLLS WERE TILTED FOR ROMNEY BY SEVERAL POINTS.........RASMUSSEN WAS  THE OUTLIER .THAT FOX WOULD QUOTE TO THE VIEWERSHIP GIVING THEM AN UNREALISTIC PICTURE OF HOW ROMNEY' WAS TRULY PERFORMING.......NATE SILVER PREDICTED EVERY STATE CORRECTLY......REMEMBER NATE SILVER THE GUY YOU NEVER HEARD OF....   THE SPORTS WRITER YOU DISREGARDED.....LMAO

I TYPE IN ALL CAPS IN YOUR HONOR.... 
Nov 7, 2012 8:45PM
avatar
STOP CRYING YOU LOSERS! it's time for Mitch and his cronnies to get off the pot and get with the program instead of wasting the last two years deadlocked because he doesn't  like  Obama. I didn't vote for Obama FYI.. nor did I  vote for Romney.  It didn't make any  difference to me if   the president and the congress can't compromise. Both sides of the aisle need to shape up or get shipped out!
Nov 7, 2012 8:42PM
avatar

Well I've grown weary...Even after a nap earlier....It was a Great Celebration last night..

 

And I have some financial balancing to do...

You guys are very,very busy on here.

Ciao.

 

Yup 4 more years....

Nov 7, 2012 8:41PM
avatar
Tog,

Fox News truly is ......Unfair and Unbalanced........Think about that......That's Fox's viewership.......
Nov 7, 2012 8:39PM
avatar
Our OPEN BORDER POLICY has came back to bite us hard! We have turned a blind eye and even given the illegal's work, and all we get in return is our conservative votes rendered useless by the very people that we are being kind to! This is the thanks we get, by them voting against us! Seems like that we should watch who we hire. They vote DEMOCRAT and then work for CASH ON THE SIDE!!  They live with their women instead of marrying them so that they can get all of the GOVERNMENT HANDOUTS! This must be stopped at all cost.
Nov 7, 2012 8:38PM
avatar
I find it interesting, looking at the electoral maps of the election, all the producers in this country, the heartland, they all voted against Obama. Yet all the consumers, big cities, and the coasts, all voted for Obama. Even look at Ohio or California maps, and it plays out inside those states that went to Obama. How long can you bite the hand that feeds you? 
Nov 7, 2012 8:37PM
avatar
WIT.........Nor for "Fair and Balanced" either.
Nov 7, 2012 8:35PM
avatar

My oh, my Classic......I've got them and as an old man, they keep getting bigger everyday...

They are displacing something else..Think it happens with the elders..??

Nov 7, 2012 8:35PM
avatar
Hey Republicans ..........Do you now believe the Rasmussen Polls? L MAO ..  Corrupted polling, just like Fox News.......Do yourselves a favor republicans, start getting your information from other sources....At least check other places to verify....... Fox news is NOT THE PLACE FOR FACT,TRUTH and REALITY.....

If you were looking for Fox News in a Library you would have to go to the FICTION section....
Nov 7, 2012 8:32PM
avatar
Ooops...JK woke up and posting for free now....Library just let him in...the computer area.
Nov 7, 2012 8:31PM
avatar

Curious how the re-election of the administration that oversaw a 7000 point increase in the market would cause a 300 point drop. In another time, it would have been a cause for celebration.  The smart money boys must be in  quandry. Obviously things did not go according to plan. Though they seemed very happy to profit from the Obama/Fed induced run-up they seem to be thinking that all that is coming to an end.  Add to that the possibility that dividend and cap gains might go up on Jan 1, there could be a reckoning coming.

 

I've been out of this market for a long time because it hasn't made sense for years.  Maybe it's about to "adjust" back to where it should be.

 

 

Nov 7, 2012 8:30PM
avatar
 To the Obama Bashers: Ha Ha Ha I win and YOU lose. Here's rubbing  your damned faces in it. Oh yeah! Rub rub rub!
  Where's that idiot who said  Mitt would win every swing state but NV while I said Obama would win every swing state except for NC. I was right and YOU didn't know what the hell you were talking about and you never will simply because you do not possess the necessary neural connections to have good logic skills. Rub rub rub, Obama Hater get back to watching NASCAR
Nov 7, 2012 8:30PM
avatar

The America I love was lost last night. In it's place we have a country of people who expect government to provide basic needs that in the past we had to work for. As a result I am going to cut spending and increase my IRA contributions to the max to limit my taxable income. I will try in every way possible to limit my part in the National economy. I will work to provide for basic needs but no  longer have the desire to help the economy improve in any way. If Americans want failure let them have it. I used to buy American made products whenever possible even if they were more expensive. Now I will join the ranks of cheaper no matter where it is made. America will never be what it was and will fail because of the what can you do for me electorate.  

Nov 7, 2012 8:29PM
avatar
Funny how all the ignorant, hateful republicans seemed to have forgotten the smirking chimp bush, who had to steal the election twice, and the country was never more divided then when that village idiot was in office.  How convenient to have selective memory. 
Nov 7, 2012 8:27PM
avatar
This disaster, along with many others in the economy and foreign policy, belongs to Barack Hussein Obama!
Nov 7, 2012 8:27PM
avatar
vote, vote early and vote often! Your vote matters unless its an absentee ballot then it may or may not be counted before election is over! Too Bad, So Sad, now lets hurry up and do nothing that matters, except maybe social issues and more social programs.
Economy and American Dominance are a thing of the past.
Nov 7, 2012 8:25PM
avatar
$1 Trillion for invading Iraq----Waste of $ but no comments from you Republicans.  Just think of that $ staying in country.  Serves you righties right!!!!!!!
Nov 7, 2012 8:24PM
avatar
the last time a barrel of oil was below $85, we were paying less than $1.50 a gallon. WTF??
Nov 7, 2012 8:22PM
avatar

Proven fact per "REPUBLICANS" three out of 5 voters are dumb, misinformed and only watch the republican channel!!!

 

Why is it that two of the richest men on earth looked at Romnesia policy and said " This doesnt make any sense!!!  Dont believe me, look for postings by Michael Bloomberg and WARREN BUFFETT, well you wouldnt know that because you only watch the republican channel.  Also how do we go from a -9GDP that a REPUBLICAN created BUSH, to a +2??? and  how is it that 2% growth is not enough?? If you are a business owner like I am then you have three scenarios, one you go broke, two you break even or three, you have a 2% growth. I'll take 2% ANYDAY!!  people % means absolutely NOTHING, do you know what 2% equates too? Can be any number 500k+/-.   Also job growth on a monthly basis!!!  not 200k but anything in the 100k a month is great to me.  Maybe if george bush would have gone ou to campagn for romney, it would of helped or better yet where was sarah palin, ooops byron?  Someone was censored, hmmm wonder why he was censored!!!!  Read REAL statistic numbers from ADP direct, not **** you see on the comedy channel, oops I meant fox.

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 stock market finished the Wednesday session on an upbeat note with the Nasdaq (+1.3%) ending in the lead. The S&P 500 settled higher by 1.1% with all ten sectors posting gains.

The benchmark index spent the entire trading day in the green, rallying to new highs during the last hour of action. The tech-heavy Nasdaq, meanwhile, briefly dipped into the red during morning action, but was able to recover swiftly.

Stocks began the trading day with modest gains ... More


Currencies

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

VIDEO ON MSN MONEY