Dow off 121 as post-election swoon continues

Investors worry about the economy, the fiscal cliff and Europe. Disney and Nordstrom earnings disappoint. Apple continues its slide since September. McDonald's monthly sales fall for the first time in 9 years. Gold and crude oil move higher.

By Charley Blaine Nov 8, 2012 2:23PM
Charley BlaineUpdated: 10:40 p.m. ET

Stocks finished at their lowest levels since the summer today as another slide in Apple (AAPL) shares pulled tech stocks lower and McDonald's (MCD) reported a surprising decline in October sales.

Apple was down $20.25 to $537.75, its seventh loss in the last 11 days, on worries that production problems are limiting iPhone 5 availability. There's talk investors are starting to ask what the company's next big wonder product might be. McDonald's was off $1.73 to $85.13 and was the biggest weight on the Dow Jones Industrial Average ($INDU), which fell for the second day in a row.

The major indexes all ended the day below their 200-day moving averages, which are key indicators of investor confidence.

After the close, shares of Walt Disney (DIS) were off 97 cents to $49.07. The company reported fiscal-fourth-quarter earnings of 68 cents a share, up from 59 cents a year ago and in line with Street estimates. Revenue of $10.78 billion, up from $10.43 billion, missed the Street estimate of $10.92 billion. Nordstrom (JWN) shares also were falling after hours as earnings of 71 cents a share missed the Street estimate of 72 cents.

The Dow closed down 121 points to 12,811, its lowest close since July 25. The Standard & Poor's 500 Index ($INX) was off 17 points to 1,378, its lowest close since Aug. 2. The close for the Nasdaq Composite Index ($COMPX) was 2,896, down 42 points, and its lowest close since July 23. The Nasdaq-100 Index ($NDX), heavily influenced by Apple, was down 40 points to 2,573.

Article continues below.
McDonald's said same-store sales fell 1.8% in October, as consumers flocked to rivals, including Burger King (BKW), which has been revamping its menus. The company said sales were down 2.2% in the U.S. and Europe. Sales fell 2.4% in its Asia Pacific, Middle East and Africa region. McDonald's contributed more than 13 points to the Dow's loss by itself. Half of the Dow's loss came from declines in McDonald's, United Technologies (UTX), Caterpillar (CAT), Home Depot (HD) and Chevron (CVX).

The Dow has fallen 434 points in two days. That's its worst two-day loss since the blue chips fell 573 points on Oct. 31-Nov. 1, 2011.

The euro's fall hurts U.S. stocks; oil and gold rise
The euro fell to a two-month low against the dollar after the European Central Bank held interest rates at a record low and said the eurozone economy showed little sign of recovering before year-end.

In addition, a European Union official said a decision on unlocking funds for Greece may not be made until late November. European stocks closed lower. A falling euro (or a rising dollar) makes U.S. exports less competitive.

Crude oil (-CL) in New York settled up 65 cents to $85.09 a  barrel today. Gold (-GC) settled up $12 to $1,724.20 an ounce.

The 10-year Treasury yield was 1.632%, unchanged from Wednesday.

Energy prices -- New York close



Thur.     Wed.

Month chg.

YTD chg.
Crude oil (-CL)

$85.09

$84.44

-1.33%

-13.90%
(per barrel)











Heating oil (-HO)

$2.9554

$2.9621

-3.49%

1.41%
(per gallon)











Natural gas (-NG)

$3.6080

$3.5780

-2.28%

20.71%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.6073

$2.5889

-0.87%

-1.89%
(per gallon)











Brent crude 

$107.25

$106.82

1.49%

-0.12%
(per barrel)











Retail gasoline

$3.4640

$3.4620

-1.62%

5.74%
(per gallon; AAA)












A nervous market
Investors were probably a little punchy after stocks suffered their worst one-day losses in nearly a year with the Dow's 313-point drop on Wednesday. 

The sell-off was due in part to President Obama's re-election and the uncertainty because of the so-called "fiscal cliff" -- the combination of tax hikes and spending cuts that will kick in starting Jan. 1 unless Congress and the White House can agree on changes.

The fiscal cliff would drive the U.S. economy back into recession next year and result in a jump in the jobless rate to 9.1% by the end of 2013, a new report from the Congressional Budget Office said.

The CBO,  the independent budget arm of Congress, said economic output would drop by 0.5% in 2013 without action. But the CBO added the U.S. economy would in the longer run return to better growth rates and lower employment, with the U.S. unemployment dropping perhaps to 5.5% by 2020, The Wall Street Journal noted.

In addition, worries are deepening about economic woes in Europe. Germany's economy is starting to slow down, and political tensions were high in Greece after its parliament agreed to new austerity measures.

The Dow and S&P 500 are off roughly 6% since a market peak in mid-September. The Nasdaq has fallen 9.1% since Sept. 14, when it closed at a 2012 high of 3,184.

If the fiscal cliff takes effect, it will result in an increase in tax rates on dividends.

Because of that potential, Leggett & Platt (LEG), which makes components used in bedding and furniture, accelerated the payment of its fourth-quarter dividend of 29 cents a share to Dec. 10 to qualify for 2012 tax rates. Leggett & Platt was down 17 cents to $26.84.

Lastly, the third-quarter earnings season has produced profits that have met estimates for the most part. Revenues for S&P 500 companies are beating estimates less than 40% of the time, instead of the usual 62%. Part of that is due to slowing non-U.S. business and the dollar's depressing effect on international revenue. If the dollar rises, the value of non-U.S. revenue falls.

The Apple effect on markets
The peaks for the major averages appear to  tracking with Apple's tumble from an all-time closing high of $702.10 on Sept. 19 and a record intraday high of $705.07 on Sept. 21.

The reason to concentrate on Apple is that it is the world's most valuable company, and it has shed about $143 billion in market capitalization as the stock has slid more than 22% since those September highs. Apple represents about 17% of the market capitalization of the Nasdaq-100 and 4% of the S&P 500.

There are lots of reasons why Apple has fallen so much. The stock was up 73% for the year at its peak. By a number of measures, the shares were overbought, and it's vulnerable to violent moves because it is the largest holding of many of the biggest hedge funds. If they start to sell, bad things can happen quickly.

It is possible that Apple is nearing a bottom. Its 14-day relative strength index was below 22 today. The index measures a stock's momentum. A reading below 30 implies a stock is oversold. A reading above 70 suggests a stock is overbought and nearing a pullback.

Another broad slump
Only four of the 30 Dow stocks were higher today: Bank of America (BAC), Boeing (BA), Hewlett-Packard (HPQ) and Travelers Companies (TRV). The laggards were Cisco Systems (CSCO) and McDonald's.

In addition, only 146 S&P 500 stocks were higher, along with 194 Nasdaq-100 stocks.

Chipmaker Qualcomm (QCOM, Century Link (CTL) and Verisign (VRSN) were the S&P 500 leaders. Qualcomm's fiscal-fourth-quarter earnings beat Street estimates, thanks to an explosion in demand for smartphones. It boosted its first-quarter guidance.

Verisign and Qualcomm were also the top Nasdaq-100 stocks. Whole Foods Market (WFM) and SanDisk (SNDK) were the laggards.

Whole Foods, down $5.62 to $90.31, offered lower-than-expected guidance for the fiscal first quarter. Results will be hurt by disruptions to its operations in the Northeast by Superstorm Sandy.

Short hits from the markets -- New York close



Thur.

Wed.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0900%

0.100%

-18.18%

800.00%
5-year Treasury note 

0.643%

0.662%

-10.07%

-22.53%
10-year Treasury note

1.632%

1.632%

-3.20%

-12.77%
30-year Treasury bond

2.769%

2.821%

-2.88%

-4.15%
Currencies











U.S. Dollar Index

80.886

80.867

1.12%

0.45%
British pound

1.5990

1.5990

-0.91%

2.91%
(in U.S. $)

 








U.S. $ in pounds

£0.625

£0.625

0.92%

-2.83%
Euro in dollars

$1.28

$1.28

-1.63%

-1.59%
(in U.S. $)

 








U.S. $ in euros

€ 0.784

€ 0.783

1.66%

1.62%
U.S. $ in yen 

79.41

79.95

-0.49%

2.99%
U.S. $ in Chinese

6.26

6.24

0.48%

-0.98%
yuan











Canada dollar

$1.000

$1.004

-0.02%

1.95%
(in U.S. $)

 








U.S. dollar 

$1.000

$0.996

0.02%

-1.98%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,726.00

$1,714.000

0.40%

10.16%
(per troy ounce)

 








Copper (-HG)

$3.470

$3.442

-1.36%

0.97%
(per pound)

 








Silver (-SI)

$32.2400

$31.661

-0.24%

15.49%
(per troy ounce)

 








Wheat (-ZW)

$9.0250

$8.940

4.40%

38.26%
(per bushel)

 








Corn (-ZC)

$7.4125

$7.443

-1.92%

14.66%
(per bushel)

 








Cotton 

$0.6926

$0.698

-1.16%

-24.45%
(per pound)

 








Coffee

$1.5140

$1.512

-2.10%

-34.07%
(per pound)

 








Crude oil (-CL)

$85.09

$84.440

-1.33%

-13.90%
(per barrel)










 

759Comments
Nov 8, 2012 11:45PM
avatar
CLASSIC LADY SAID.:  """IF YOU ADVERSARY IS ATTEMPTING SUICIDE GET OUT OF THE WAY """"
=====================================
THAT'S THE SAME ATTITUDE MITCH MCCONNEL AND THE TEA PARTY  HAD THE DAY PRESIDENT OBAMA GOT ELECTED IN 2008.... ADVERSARIAL ........F@@K THAT SH!T.....ARE YOU INSURGENTS OR AMERICAN'S!!!!!!!!!!!!!!!!!

THE AMERICAN PEOPLE HAVE SPOKEN NOW..............TWICE...........ACT LIKE AN AMERICAN...SHOW SUPPORT.......AND PULL FOR AMERICA.......FOR YOUR PRESIDENT AND MY PRESIDENT, PRESIDENT BARACK OBAMA....  UNITED WE STAND, DIVIDED WE FALL !!!!!!

AGAIN ALL IN CAPS IN YOUR HONOR CLASSIC LADY...........

Nov 8, 2012 11:30PM
avatar
You've had four years and all I've seen is finger pointing and blaming. You all get 4 more years, let's see what you've got. It's not gonna be possible to point the finger elsewhere now. Best of luck.
Nov 8, 2012 11:28PM
avatar
Hey!...looks like there are more ways to skin a monkey....err, I mean cat.
Nov 8, 2012 11:28PM
avatar
TIWIT 
YOU WON !!!!!   IT'S ALL YOURS ,,,,,,LETS SEE WHAT YOU GOT,,,AND IF YOU HAVE IT GOOD TO GO !!!I LIKE THAT...!!!!   
============================================
The American people SPOKE 4 years ago and the Republican party dismissed them, OBSTRUCTED PRESIDENT OBAMA FROM HIS AGENDA........Now the American People have SPOKEN AGAIN.....
 You know the old saying.....Lead, Follow or GET THE HELL OUT THE WAY..!!!...  and right now the REPUBLICAN PARTY,  needs  TO GET THE HELL OUT THE WAY  !!!!
Nov 8, 2012 11:25PM
avatar
EAGLE

WHY NOT  "TRIDENT" AS THE INSIGNIA DESIGNATES ????

MR.SEAL ???   MAL AD OSTEO    MY A$$
Nov 8, 2012 11:17PM
avatar
Position yourself for a huge rally next week in the market and a follow through to the end of the year......
Nov 8, 2012 11:16PM
avatar
TIWIT -

Like I have always said ---- OBAMA 2012 ! and --- a Democratic Senate to boot !

The progressives are now in the transparent crucible for all of us to enjoy the incineration.  The House need only keep the lid on the pot and let them burn.  A steady stream of hearings will turn up the heat.

After the meltdown, the rest of us will go on in a more sound albeit shrunken economy.  But the control freaks of the establishment Republicans and progressives (in a perpetual 69), are going to be politically lynched in various ways.


Nov 8, 2012 11:12PM
avatar

"President promises to use his second term to boost the . The opposite is more like it: A strengthening economy will boost the president’s second term. Job growth is poised to continue increasing , which will make it easier to shrink the budget while keeping taxes low and preserving essential spending. All this will probably occur without any magic emanating from the Oval Office. It would likely have taken place if had been elected president, Bloomberg Businessweek reports in its Nov. 12 issue. “The economy’s operating well below potential, and there’s a lot of room for growth” regardless of who’s in office, says, chief economist of forecaster Moody’s Analytics."

 

Gee, now Bloomberg is trying to discredit Obama's 2nd term before it even gets started. Why wasn't this published BEFORE Romney lost.

Nov 8, 2012 11:12PM
avatar

TWAT, You and your Party is what has been deemed extreme, kinda like Bashar al-Assad's Government.....The Tea Party Patriots will defeat you.

 ========================================

Is your MEMORY THAT SHORT??????????   THE AMERICAN PEOPLE SPOKE.!!!!....THEY RE-ELECTED PRESIDENT OBAMA........AND REGURGITATED THE TEA PARTY....


Nov 8, 2012 11:09PM
avatar
What I find most interesting is the post-election commentary by the liberal media. "They" appear and visibly so very concerned.  There is nowhere to hide, now.  They have shot their wad on this and they know it.  It is all coming out and many simply do not give a rat's butt about all this.  You made your pot and now you have to....you know the rest.  Have a nice weekend and fly your Mexican flags proudly. This whole thing is a nightmare and it will get much worse.  
Nov 8, 2012 11:07PM
avatar
1st Some1 - "...... there isn't one person in Washington that knows how to stop it. "

Excuse me --- Ron Paul has known for over 30 years and has been shouting it and trying to stop it.  Unfortunately, we continue to be dazzled by beauty contestants for President.  The Republicans and everyone will now get what they deserve.

Nov 8, 2012 11:05PM
avatar

I see we still have the low life folks doing the jealousy and envy thing!! One of the seven deadlies, you know!!! As the top 10% earners are doing the same as I am ... the lowest class will be wondering what happened to all the money they were promised. It's all so amusing. the top earners didn't get to where they are by being one step behind. And, in my circle, the folks with money are all putting their cash in safe houses like the Cook Islands and getting residence in other countries. Did you know is you invest $800,000 in a business in Canada, they give you immediate residence and citizenship. "Ohhhhh Canada, my home and native land" ...... Since the top 10% earners paid over 80% of the taxes .. what happens if many of them pull their money and send it offshore??? You will have a country in BK and a bunch of losers looking to Obama ... hey Barry .. what happened?? Where's my money!!

POETIC JUSTICE ... it's a beautiful thing!!

Nov 8, 2012 11:03PM
avatar
Mitt Romney was on to something about the culture of this country when he described almost half the country without skin in the game.  These of course make up the fertile progressive fields that grow Obama supporters.

When you start to see the Mark Owens drag out SPECOP information so concurrently to feed the bread and circuses that we consume, you know we are in trouble.  If this is starting to happen at this level of government force, this whole thing is going to come unglued.

Nov 8, 2012 11:00PM
avatar

There isn't one person that doesn't know we can't continue uncontrolled spending and there isn't one person in Washington that knows how to stop it. Therein lies the problem.

Nov 8, 2012 10:54PM
avatar
Crazy8,

The TEA PARTY days are numbered......they will become irrelevant the next two years in order to move FORWARD...... Then after 2014 elections they will be.what's called.......History​.......they have been DEEMED TO EXTREME FOR AMERICA...
Nov 8, 2012 10:50PM
avatar
I'm buying on this downturn. It has always made me profit.
Nov 8, 2012 10:48PM
avatar
all this crying and we are going to flood again.
Nov 8, 2012 10:42PM
avatar
Just wait until all that "funny money" sitting in the federal reserves and bank**** the streets!...Inflation...here we come!
Nov 8, 2012 10:41PM
avatar

hey hate monger commienazi hate spewing retards....since when does one man become responsible for the market...I've been in my job for 4 years now, we just downsized, does that mean I am responsible...doubt it....instead of spewing your repeats of rush blabber - why don't you look at you party - figure out why a candidate was unable to win in his home state, his vp's home state or the state he was gov. for...makes you think that there might be more to romney than someone who hates black people doesn't it? 

 

Obama got in b/c he earned an election - there is nothing more to it - all this whining makes me think you all were picked last in lunch time ball...maybe ask your mom to wipe those little itsiebitsie tears away and explain to you that the market has been teetering on self destruction for as long as she can remember.

 

Remember all these posts when the markets turn around and start positive gains again, like they will and istead of 712 comments bashing one man's election to a second term, I am pretty sure it will be quiet.

 

The lower it goes now, the more I buy for cheap and the more money I make and move when it starts creeping back up again....look at a graph, you know a picture with lines on it....I'm pretty sure it goes up and then down up and then down....like your mom did to make you

Nov 8, 2012 10:33PM
avatar

Congratulations all of you Islamic Obama loving lunatics. You wanted change you got it. But the change is as you can see from bad to worse. You have choosen to vote for someone with a nice smile and smooth talk but lacks the brain that God gave to a goose. You have chosen an idiot that invested billions of tax payer money into various corporations that all went bankrupt rather than a business person that invested billions of private money that flourished. I hope

everyone that voted for the clown is down to nothing more than a pair of under ware by the time his term has expired. In the mean time I have choosen to do the only safe thing to do while this moron is running the country. I have moved out of the country until your clown is no longer in office.  Amen

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 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


Currencies

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

VIDEO ON MSN MONEY