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)










 

530Comments
Nov 9, 2012 6:02PM
avatar
Horrendous week is finally over, we were able to keep things on the green but really, didn't mean a thing....The Obama factor bit most Americans in the **** this week and hard...We had hope today when we were up about 80 points, maybe a triple digit advance would have calmed things down a bit but, this inept, socialist piece of garbage had to open his big trap and we all saw the market's displeasure with his bs and as usual when he speaks, we went negative...He was incapable to do a thing in 4 years, does he think that with the same lame rhetoric he is going to convince Wall Street, or anyone else for that matter that he is now going to do something positive? Think not. Well, lets hope this was just a short term drop and next week we can go back to business and forget who is in the WH. The way it should be. We have enough to worry with all the fricking manipulators down here...BTW, they loved this week to death. Worst week in about 5 months...Sad... Oh well, have a great weekend all.
Nov 9, 2012 5:56PM
avatar

Quoted Text:  "You Obama voters, choke on it!!! "

 

The only people who can't swallow it are those that want to deny it.

 

Might have been Patreaus' problem, she didn't swa.......

Nov 9, 2012 5:53PM
avatar
RUMOR HAS IT THAT PETRAEUS HAD THE AFFAIR WITH CLASSIC LADY.
Nov 9, 2012 5:52PM
avatar
Is this the same Patreaus who was considered god when he had a plan that was not pulling out of a certain war a few years ago, aka the surge?  Every repub had his picture on the wall for a good 4 months, now it's just another dart board for you guys eh.  Geez what have you done for me lately.
Nov 9, 2012 5:37PM
avatar
"Stocks suffer worst weekly loss in 5 months"

And every bit of it came  AFTER the Election..............................
Nov 9, 2012 5:35PM
avatar
Yes classic they are resignations.  Collin Powell (Spelling???) and Donald Rumsfeld (again spelling???) both resigned as have many for the second term.  Nothing new here, nice try though.
Nov 9, 2012 5:27PM
avatar
America wanted  this clown for another 4 years, enjoy that hope and change.   I am still amazed at the stupidity exhibited in this last election.  You Obama voters, choke on it!!! 
Nov 9, 2012 5:22PM
avatar
Ya so every admin makes changes in the second term.  Bush did, Clinton did.  Trying to make a big end of the world secret cover up out of normal things, you guys are cute when your angry ;)
Nov 9, 2012 5:21PM
avatar

Like I saw in the Campaign..There are Repubs and Pundits on here that can't do ARITHMETIC.

 

Right.....Randall47 ??

Nov 9, 2012 5:20PM
avatar
Boehner the Tea Party has been rendered irrelevant so stop etch a sketching !!!!!!!!!!!!!!!!!
Nov 9, 2012 5:18PM
avatar

And RANDY the RUDE BUM........Comes up with the best funny of the Week..

 

Way to go Randy, the man.

Nov 9, 2012 5:12PM
avatar
Yeah maybe down for the week...But still some good buys on good dependable Companies.
Nov 9, 2012 5:10PM
avatar
CIA Director resigns says extra marital affair was error in judgment ? There is more HOPE AND CHANGE THE AMERICAN PEOPLE CAN BELIEVE IN FROM IT'S LEADERS ! THERE IS A HARD RAIN COMING !
Nov 9, 2012 5:04PM
avatar

The Dow would have to go up 1000 points to offset these losses we took in the last few week. Right off this year!!

Nov 9, 2012 4:59PM
avatar
The Dow would have to close ove 50 points to show any gain so Friday is a total loss too!!!!
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.
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