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 10, 2012 12:04PM
avatar

It's a beautiful weekend....But had a little downer of a week at the Street..It's coming next week.

 

I think the Administrtion, and Congress; Will be getting their shidt together in ONE pile.??

Nov 10, 2012 12:00PM
avatar

Classic....I always was a car guy...Still am...Check out replies under TIWIT.

 

BTW....Kicked azz at the Casino...Friday night, about 12 large to the Good....Boooyahhhh!!

Nov 10, 2012 1:54AM
avatar
LOOKING AT MY LAST TWO POSTS,  DOES ANYONE SEE THE PROBLEM???????  

 DOES ANYONE SEE A PATTERN???????

DID YOU LEARN SOMETHING CLASSIC LADY??????    IS THAT POSSIBLE??????

CLASSIC LADY,

JUST OUT OF CURIOSITY, I CHECKED YOUR STATEMENT......THAT CALIFORNIA HAD THE HIGHEST DROP OUT RATE,,,,,,,,,THE TRUTH.......CALIFORNIA WAS 12TH IN THE  DROP OUT RATE IN 2008-2009
In the 2008-09 school year, California had a dropout rate of 5%.
In the 2008-09 school year, Illinois had a dropout rate of 11.5%.
 http://high-school-dropout-rates.findthedata.org/

YOU CAN'T EVEN GET YOUR SPIN RIGHT..................DO YOU WORK FOR FOX NEWS????
 YOU BOTH ARE EQUALLY INCOMPETENT.... 








Nov 10, 2012 1:46AM
avatar
.
.THESE SAME MOST UNEDUCATED STATES, ALSO TAKE, YES TAKE AND RECEIVED THE LION SHARE OF FEDERAL MONEY......THEY TAKE MUCH MORE THAN THEY PRODUCE AND GIVE BACK TO THE FEDERAL GOVERNMENT.....
.http://www.politifact.com/truth-o-meter/statements/2012/jan/26/blog-posting/red-state-socialism-graphic-says-gop-leaning-state/Red State Socialism

IT'S THE SO-CALLED CONSERVATIVE STATES WHO HATE SOCIALISM,  AND VOTE REPUBLICAN, NEED AND GET THE MOST HELP FROM THE FEDERAL GOVERNMENT !!!!!!!!!!!!!!!!!!   NOW ISN'T THAT AMAZING !!!!!!!!!!!!!

Of the 32 states that RECEIVE more than they CONTRIBUTEm  24, ( 84%) are RED STATES that have voted REPUBLICAN in a previous presidential election.  

Of the 18 States that CONTRIBUTE more than they receive 14 are BLUE STATES that have voted DEMOCRATIC....78% in a previous presidential election....

http://farm4.static.flickr.com/3041/2987025203_fc2c517522_o.jpg

WE NEED TO INVEST IN  TEACHERS AND EDUCATION IN THESE RED STATES FULL OF UNEDUCATED IDIOTS TO SAVE  OUR COUNTRY FROM BANKRUPTCY.....THEY ARE DRAINING US DRY  !!!!!!!!!...    DAMN TAKERS!!!!!!!.  SOCIALISTS!!!!!!!!!!!!!!!!!  COMMIES!!!!!!!!!!!!!!
THEY ARE TAKING AWAY OUR FREEDOM !!!!!!!!!!!!!!!!!

Nov 10, 2012 1:44AM
avatar
GET INFORMED CLASSIC LADY.............YOU CONTINUALLY KEEP MAKING YOURSELF LOOK THE THE HATE FILLED FOOL..........JUST LIKE THE CURRENT GOP OF 2012......YOU HAVE THE CRITICAL THINKING SKILLS OF A SOMEONE WITH BRAIN DAMAGE.... DID MY POST SAY ANYTHING ABOUT CALIFORNIA OR DEBT OR DEFICITS ??????   REMEMBER, ASSUMPTION IS THE MOTHER OF ALL F@CK UP'S AND ASSUMPTION IS A BAD HABIT YOU HAVE...
BTW, CALIFORNIA IS NOT IN THE TOP 10 MOST EDUCATED STATES.......YOU CONTINUALLY
SPIN, SPIN, SPIN......AVOIDING TRUTH AND FACT.....HELL YOU AVOID THE POINT BEING MADE  !!!!!   LOL.......  WHY?   IS IT A MENTAL HANDICAP YOU HAVE? 

Obama Swept States With The Most Educated Workforces And The Highest Paid Teachers
Of the 10 most educated states, measured by the percentage of residents over 25 years old who have a bachelor’s degree or higher, Obama swept all 10. Conversely, among the 10 least educated states, Obama lost 9 states.
Here are the 10 most educated states, with those Obama won . The percentage of residents over 25 with a college degree is in parentheses:.Most educated states Least educated states.

Most Educated States                         Least Educated States
Massachusetts (39.1%)                      West Virginia (18.5%)
Maryland (36.9%)                                 Mississippi (19.8%)
Colorado (36.7%)                                 Arkansas (20.3%)
Connecticut (36.2%)                            Kentucky (21.1%)
Vermont (35.4%)                                  Louisiana (21.1%)
New Jersey (35.3%)                           Alabama (22.3%)
Virginia (35.1%)                                  Nevada (22.5%)
New Hampshire (33.4%)                   Indiana (23.0%)
New York (32.9%)                              Tennessee (23.6%)
Minnesota (32.4%)                              Oklahoma (23.8%)

AS USUAL YOU ARE WRONG AGAIN.....................TYPED IN ALL CAPS IN YOUR HONOR...
Nov 10, 2012 1:17AM
avatar

Surprise, surprise...


"Just two days after President Obama’s re-election, the Obama Interior Department announced a plan to shut down 1.6 million acres of federal land to oil shale development. The land had originally been slated for drilling under President George W. Bush."

Nov 9, 2012 10:40PM
avatar
This says it ALL.!!!!!!......Is this the reason the GOP is against  FUNDING EDUCATION ??????

The TOP 10 BEST EDUCATED STATES ALL VOTED FOR PRESIDENT OBAMA...

THE BOTTOM 10 WORST EDUCATED STATES VOTED FOR MITT ROMNEY.....only exception Nevada

http://www.happyplace.com/19076/election-infographic-shows-most-educated-states-voted-for-obama
Nov 9, 2012 9:43PM
avatar
TIWIT, We would prefer losing or winning based on our values
==============================
Crazy8
You did lose based on your values......Well not exactly, the Republican Party LOST  because they adopted TEA PARTY  Values......

The republican Party has spent the last 4 years trying to cram TEA PARTY values down the throats of the American People......and on Nov 6th,   THE AMERICAN PEOPLE REGURGITATED THE TEA PARTY.......The TEA PARTY'S days are numbered......   I think even the KOCH BROS will dump you too...
Nov 9, 2012 9:01PM
avatar
Here are some headlines to mull over....

Citigroup’s Pandit Gets $6.7 Million Compensation for 2012....


Pandit Gets Paid


NEW YORK () -- Ousted Citigroup () CEO Vikram Pandit is "not entitled" to a severance payment, but Citigroup late on Friday announced it had granted him an "incentive award."


While Pandit abruptly resigned as Citigroup CEO on Oct. 16, with chief operating officer John Havens also giving up his executive position that day, Citi said in its filing that both "have remained employed and received their regular pre-existing base salary and benefits," and would actually exit the company on Nov. 30.

On his way out the door, Pandit will receive an incentive award of $6,653,333, while Havens will receive a slightly higher award of $6,792,222.- 


DID YOU SEE THIS???  Why do the banksters keep whining about how badly Obama is

hurting them ?   Why do Republican leaning voters still keep believing it? 

Nov 9, 2012 8:57PM
avatar
Maybe by the end of his term, when he drives the deficit up to 12 to 20 Trillion and the dollar collapses people will listen.
Nov 9, 2012 8:54PM
avatar
Doesn't this drop in the markets tell the people they voted for the wrong man !!!!!
Nov 9, 2012 8:53PM
avatar
Frankly I just adore how efficiently CRAWDADS
deals with our surplus of apostrophe ' s...dont you?
LOL.....

Nov 9, 2012 8:42PM
avatar
Comrads,

Is this story about you?

Man arrested for DUI twice in one night at the same time.....



Nov 9, 2012 8:38PM
avatar
Here's how delusional Mitt and his campaign was......Mitt Romney had NOT written an concession speech.....After he was told he lost, he pulled out an IPAD and wrote it........It's amazing the campaign was that confident.......Did they think they knew something no one else did?

Wow,  talk about living in a Bubble......


Nov 9, 2012 8:21PM
avatar

All Obama wants to do is bring the tax structure / brackets back to where they were before the genius relaxed them thinking we had a surplus.Of course spending also needs to be reduced in areas that make sense. So, why all the nasty comments toward our President??

 

We need to get this mess our country is in fixed. We don't have any more time to keep screwing around and trying to make the President fail to show  a party or media is right about the guy.

Nov 9, 2012 8:08PM
avatar
It is time for the Tea Party Patriots to leave the Republican Party. We have tried to work with them for over 2 yrs. and they betrayed us.
=====================================
Yes another thing we agree on , that would be wonderful.......TEA PARTY, please leave the Republican Party.....I don't blame you at all....!!!!   90% of All American's would agree...
avatar
Hhhhmmm.  Worst week in 5 months.  Now what happened this week that could have caused something like this to happen?  Hhhmmmm. 
Nov 9, 2012 7:31PM
avatar
Obama blabbing doesn't fix anything and never has. What will be funny is when he starts to enact the ideas that Mitt Romney stated in his campaign because Obama's won't work. It's sad that the takers outnumber the producers in our country now. It's not what party it is anymore it's the people who want to vote for a president where thay can get something for nothing. Our country is becoming stupid and lazy at an alarming rate and Obama fuels the problem. If you cut the freebies people might find out they have more incentive to do something besides hold their hand out and then bitch because it isn't enough.
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