Stocks suffer worst weekly loss in 5 months

The major averages see small gains but fall for the week as sparring begins between the White House and House Speaker Boehner on fixing the fiscal cliff. Apple rallies after three big losses. Disney sags. Kayak jumps after merger with Priceline.com.

By Charley Blaine Nov 9, 2012 2:26PM
Charley BlaineUpdated: 7:38 p.m. ET

After two nasty days of declines, the stock market struggled to finish ahead today. It succeeded with very small gains, but the major averages still had their worst weekly performance in five months.

If you want to thank someone for at least halting the losses this week, thank consumers, who are more confident about the economy. Thank Apple (AAPL), which rallied today after three straight declines.

Thank Priceline.com (PCLN), which is buying Kayak Software (KYAK), operator of the Kayak travel site, for some $1.8 billion. Kayak shares were up $8.63 to $39.67.

The wild card for the market today has been Washington and the fiscal cliff -- the mixture of government spending cuts and tax hikes set to take effect Jan. 1. Remarks today by President Barack Obama and House Speaker John Boehner suggested there remain big differences in approach. Big enough, in fact, the Dow Jones industrials ($INDU) briefly fell into the red after Obama said a solution to the fiscal cliff had to be balanced -- some tax increases and spending cuts. Boehner opposes any tax increases.

The Dow ultimately finished with a 4-point gain to 12,815. The blue chips had been up as many as 79 points and down as many as 26 after Obama's remarks. The Standard & Poor's 500 Index ($INX) gained 2 points to 1,380, and the Nasdaq Composite Index ($COMPX) gained 9 points to 2,905.

Article continues below.
The Nasdaq-100 Index ($NDX) rose 12 points to 2,584. Apple, which represents about 17% of the market capitalization of the index, rose $9.31 to $547.06. The shares had been as high as $554.88 after falling more than 8% in the past three days.
The Dow's gain would have been more than 20 points higher if Walt Disney (DIS) were flat today. But the entertainment giant's fiscal-fourth-quarter earnings and outlook disappointed Wall Street, and the shares were down $2.98 to $47.06.
Despite today's gains, the Dow and the S&P 500 suffered their third straight weekly losses and fourth in the last five. The Nasdaq had its fifth weekly loss in a row and seventh in the last eight weeks.

The Dow fell 2.1% for the week, while the S&P 500 was off 2.4%, their worst weekly performances since the end of May. The Nasdaq's 2.6% loss was its worst since the week of Oct. 8.

Those losses were modest compared with the 3.2% loss suffered by Japan's Nikkei 225 Index ($JP:N225) or the 2.7% decline for Germany's Dax Index ($DE:DAX).

But the week still left the Dow S&P 500 and Nasdaq below their 200-day moving averages, a bearish sign for markets. But the market is oversold by other measures, with a bounceback rally at the very least due in the near future.

The big risks, of course, are the fiscal cliff and what happens in Europe.

Markets for the week



11/9/2012

11/2/2012

% chg.

YTD chg.
Dow Industrials

12,815.39

13,093.16

-2.12%

4.89%
S&P 500

1,379.85

1,414.20

-2.43%

9.72%
Nasdaq 

2,904.87

2,982.13

-2.59%

11.50%
Russell 2000

795.02

814.37

-2.38%

7.30%
Crude oil 

$86.07

$84.86

1.43%

-12.91%
(per barrel)

0.00

0.00

0.00%

0.00%
U.S. Dollar Index 

81.91

80.68

1.52%

1.72%
10-yr. Treasury

1.61%

1.73%

-6.55%

-13.79%
Gold

$1,730.90

1,675.20

3.32%

10.47%

Consumers are feeling better
The Thomson Reuters/University of Michigan’s preliminary index of consumer sentiment for November increased to 84.9 from 82.6 the prior month. Economists had expected a reading of around 83.

The gains were due to lower gasoline prices and an improvement in both housing and labor markets, according to Capital Research, an economic consulting firm.

Capital Research economist Amna Asaf was skeptical the gains in the index would translate into more consumer spendiing. The fiscal cliff will get lots of news play and may weigh on markets.

Energy prices -- New York close



Fri.     Thur.

Month chg.

YTD chg.
Crude oil (-CL)

$86.07

$85.09

-0.20%

-12.91%
(per barrel)











Heating oil (-HO)

$3.0055

$2.9554

-1.85%

3.13%
(per gallon)











Natural gas (-NG)

$3.5030

$3.6080

-5.12%

17.20%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.6992

$2.6073

2.62%

1.57%
(per gallon)











Brent crude 

$109.40

$107.25

3.52%

1.88%
(per barrel)











Retail gasoline

$3.4560

$3.4640

-1.85%

5.49%
(per gallon; AAA)












A busy week ahead
The fiscal cliff will dominate headlines next week as will changes in China's leadership and events in Europe.

But the week will feature reports on producer and consumer price inflation on Wednesday and Thursday and important reports on manufacturing in New York and the mid-Atlantic states, also on Thursday.

Plus, the Federal Reserve releases minutes of its October meeting on Wednesday.

It's a big week for earnings, including:
  • Monday: D.R. Horton (DHI) and Jacobs Engineering (JEC).
  • Tuesday: Home Depot (HD), Cisco Systems (CSCO), Michael Kors (KORS) and Saks (SKS).
  • Wednesday: Abercrombie & Fitch (ANF) and Staples (SPLS).
  • Thursday: Wal-Mart Stores (WMT), Ross Stores (ROST), Viacom (VIA) and Gap (GPS).
  • Friday: Ann (ANN), Foot Locker (FL) and J.M. Smucker (SJM)
J.C. Penney's terrible year continues

The bad news for J.C. Penney (JCP) keeps getting worse. The struggling department-store chain reported today a wider third-quarter loss than Wall Street expected on a nearly 27% sales drop. 


Shares fell $1.05 to $20.64 and are off 52% from their 2012 high, reached on Feb. 9.


Today's was the third consecutive quarter losses and sales declines as customers continue to show that they're unhappy with Penney's decision this year to ditch hundreds of coupons and annual sales in favor of everyday low pricing.


The poor results underscore the challenges facing Penney CEO Ron Johnson, the former Apple executive brought in a year ago to turn the company around. Since then Johnson, who masterminded Apple's popular retail stores, has been working to change everything at Penney's, from its stores to its merchandise.


The problem is it will takes years to get it all changed, and the big question is whether its board of directors will wait long enough for the changes to work. 


Late today, Standard & Poor's cut the company's credit ratiing to B- from B+. That's deeper into junk territory.

A broad rally fades
At one point, all of the 10 sectors in the S&P 500 rose today. That list dropped to six at the close. The leaders were technology, health care and industrial stocks. The laggards were utility, consumer discretionary, materials and energy shares.

Boeing (BA), Caterpillar (CAT) and IBM (IBM) contributed nearly 30 points to the Dow by themselves. Twenty of the 30 Dow stocks were higher.

Meanwhile, 271 S&P 500 stocks were higher, along with 52 Nasdaq-100 stocks.

International Game Technology (IGT), medical-device maker Covidien (COV) and Cliffs Natural Resources (CLF) were the S&P 500 leaders. Disney, J.C. Penney and Microchip Technology (MCHP) were the laggards.

Research In Motion (RIMM) was the Nasdaq-100 leader, followed by Sirius XM Radio (SIRI). The laggards were Microchip Technology and Nvidia (NVDA). 

Separately, Groupon (GRPN) was down $1.16 to $2.76. The online deals service posted third-quarter results that showed slowing revenue growth and a decline of its core business.

But Zipcar (ZIP) was up 96 cents to $7. The car-sharing company posted strong third-quarter results and is still on track to report its first annual profit in 2012.

Oil and gold rise
Crude oil (-CL) in New York settled up 98 cents to $86.07 a barrel. Brent crude in London, the bigger determinant in gasoline prices, had risen $1.99 to $109.24 a barrel.

The national average retail price of gasoline was at $3.456 a gallon, down from Thursday's $3.464.

Gold (-GC) had settled up $4.90 to $1,732.70 an ounce. For the week, gold was up 3.3%, its third-largest weekly gain of the year after the weeks of Jan. 23 and May 28.

Short hits from the markets -- New York close



Fri.

Thur.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0900%

0.090%

-18.18%

800.00%
5-year Treasury note 

0.639%

0.643%

-10.63%

-23.01%
10-year Treasury note

1.613%

1.632%

-4.33%

-13.79%
30-year Treasury bond

2.752%

2.769%

-3.47%

-4.74%
Currencies











U.S. Dollar Index

81.098

80.886

1.39%

0.72%
British pound

1.5901

1.5985

-1.46%

2.34%
(in U.S. $)

 








U.S. $ in pounds

£0.629

£0.626

1.48%

-2.28%
Euro in dollars

$1.27

$1.27

-1.89%

-1.86%
(in U.S. $)

 








U.S. $ in euros

€ 0.786

€ 0.784

1.93%

1.89%
U.S. $ in yen 

79.62

79.48

-0.23%

3.26%
U.S. $ in Chinese

6.26

6.24

0.51%

-0.96%
yuan











Canada dollar

$0.999

$1.000

-0.11%

1.85%
(in U.S. $)

 








U.S. dollar 

$1.002

$1.000

0.19%

-1.81%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,730.90

$1,726.000

0.69%

10.47%
(per troy ounce)

 








Copper (-HG)

$3.446

$3.470

-2.05%

0.28%
(per pound)

 








Silver (-SI)

$32.5990

$32.240

0.88%

16.78%
(per troy ounce)

 








Wheat (-ZW)

$8.8650

$9.025

2.54%

35.81%
(per bushel)

 








Corn (-ZC)

$7.3875

$7.413

-2.25%

14.27%
(per bushel)

 








Cotton 

$0.6958

$0.693

-0.70%

-24.11%
(per pound)

 








Coffee

$1.4990

$1.514

-3.07%

-34.73%
(per pound)

 








Crude oil (-CL)

$86.07

$85.090

-0.20%

-12.91%
(per barrel)










 

565Comments
Nov 9, 2012 4:58PM
avatar
"GENERAL BETRAYUS RESIGNS AS THE HEAD OF THE C I A,,

CLAIMS OF AN EXTRA-MARITAL AFFAIR"

Her name is Libya Benghazi...........
Nov 9, 2012 4:55PM
avatar

WTF...Are you yapping about CGT...Are you looking at the same Big Board or Ticker I am....?

Or are you in the bathroom or something ??

Nov 9, 2012 4:47PM
avatar

Tiwit...The non-popular Trading tax is not anything Wall St. is or would be happy about...

It has been mentioned as a possible "minute amount" per/share in micro pennies.

That is a big deal on the HFT scumbags....Or well.

But a per trade cost might be acceptable, but most of us that do trades; Would only figure it into limit type trades and push the price by that much...

And the "buyer" would pay the tab..

But, the only thing I see is trading houses,brokers and FAs would double it, to make a little more cut for themselves....

Now you brokers guys, don't bring your wrath; Because I'm well aware of what you would do to us years ago...And the main reason you no longer have us for Clients.

And we save $7-15,000 per year overall...See what you lost. !!

 

Nov 9, 2012 4:42PM
avatar
Again  Obummer selloff continues, hopefully this is the last day....The buffoon spoke and the market tanked once again...We were up almost 80 points, now we are heading south...Folks, Wall Street does not trust this guy to fix anything, he is incompetent, clueless and totally inept....Markets do not lie....We have about 25 minutes to go, scumbags as happy as they have been since tuesday.....Sad...Lets see if we can keep in the green at least...More after the close.
Nov 9, 2012 4:34PM
avatar
I just dont understand why some people defend the 1%. Tax them at a SLIGHTLY higher rate. Everyone need to contribute to fixing the econmy. And they are the ones that took out Three Trillion Dollars out of the stock market in 2008 causing the collapse.
Nov 9, 2012 4:27PM
avatar
I believe there is great investment opportunity in health care, but it would require a lot of patients.
Nov 9, 2012 4:25PM
avatar
Obama claims that Americans agree with his approach to the deficit!  Is there not one brain among them that says you need to cut all the unnecessary expenses that the government has?  Please watch the show White House Revealved and you will see how much money it costs to keep this guy and his family!  Talk about extreme expense! Plus, raising taxes is not the only way to decrease a deficit.  I have an easy way to decrease the deficit and we would have plenty of money!  If all the people who earn over the fica limit were taxed for 100% of their wages and also the company would be taxed we would have more than enough money!  Can you imagine somebody paying 6.2% on 15 million versus 75K? Plus, I would give a max on social security which means that the extremely weathly would only get the max on the 75K not there 15 million. Then again they shouldn't be getting social security in the first place with that kind of money.
Nov 9, 2012 4:25PM
avatar
Robert Packer
 So come on John boehner hold your ground.
---------------------------------------------------------------------
You actually ment "hold your pillow", right?
Nov 9, 2012 4:22PM
avatar
Wall Street is closer to falling off a fiscal cliff than our country is!! They jumped this week right off the cliff and gave away everything for 2012!!
Nov 9, 2012 4:17PM
avatar
For what its worth I think everyone should pay some tax even if its  a dollar.  Getting to be too many people paying nothing.
Nov 9, 2012 4:10PM
avatar

WASHINGTON (AP) - President Barack Obama, laying down his marker for grueling "fiscal cliff" negotiations, said Friday he won't accept any approach to federal deficit reduction that doesn't ask the wealthy to pay more in taxes.

"This was a central question during the election," Obama said in his first post-election comments on the economy. "The majority of Americans agree with my approach."

Following up, Obama's spokesman said later that the president would veto any legislation extending tax cuts for families making $250,000 or more.

The president, speaking in the White House East Room, said he wasn't wedded to every detail of the plans he outlined during the election, adding, "I'm open to compromise." But he offered no indication that he was willing to back down."


Translation--- "I'm no idiot. Boehner fooled me once, that was my bad. He won't do it again and if he doesn't dump his pompous ego problem,. it's going to get really bad."


America to Boehner-- Tax the rich. 

America to Obama: Squeeze them turnips hard. Recover careers so we can solve the revenue problem.

Nov 9, 2012 4:10PM
avatar
TIWIT said;
"MisterKyte,
You should try a bowl,,,, I bet your comments would be way more PASSIVE......lol"

That's actually pretty funny !
I did inhale, and I can tell you from experience, you're right. My comments were more passive, but my eating habits were far more agressive! ;)
Nov 9, 2012 4:09PM
avatar

Now on MSN:

"Obama insists on tax hike for wealthiest"

 

HockeyDude better speed up those spanish lessons.

Nov 9, 2012 4:08PM
avatar
Grover Norquist (sp?) needs to self-deport.  How does a nonelected person manage to control 200+ members of Congress?  Same thing true on the Democrat side.   Hopefully, in time we can elect some true statesmen, who can sit down and work out some type of comprimise/agreement.  Sort of like our jury system works, most of the time.  Stay in the room until you get it worked out.  Right now we are "hung" with nothing but prospects for a retrial.  
Nov 9, 2012 4:08PM
avatar
If pot were legalized.  I'd open up a chain of brownie shops and hire each and everyone of you @ $40.00/hr.
Nov 9, 2012 4:07PM
avatar
MisterKyte,

You should try a bowl,,,, I bet your comments would be way more PASSIVE......lol
Nov 9, 2012 4:05PM
avatar

Let's fix our nation, every year we add 1% to everybody's tax rate across the board.

Every year we cut government spending 1% across the board.

Within 5 years our budget will be balanced and America will be a magnet for foreign investment, spurring growth and entrepreneurial opportunities.

Nov 9, 2012 4:04PM
avatar

The POTUS is only a puppet, the man behind the curtain, the Fed, runs the show. We the people

have no access to him . A curtain of secrecy, independent of congressional oversight and control.

Nov 9, 2012 4:04PM
avatar
Retard said;
"Lookee, Lookee.........DOW up higher !! and so are the other Indices.....woooooho​oooo."

SWEET! Only down 340 for the week now!!!!!!!!!!
Nov 9, 2012 4:02PM
avatar
TIWIT said;
"I think we should legalize POT and tax the Hell of it........Billions of Revenue to be had......"

It's just too easy to grow. It would never work.

Furthermore, if you think we have a boatload of freeloaders and takers on the dole now, just think of how unproductive society would be then. Wait, they're already the same people..............
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