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.
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.
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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.
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 $47.06.
The Dow fell 2.1% for the week, while the S&P 500 was off 2.4%, their worst weekly performances since the end of May. The Nasdaq's 2.6% loss was its worst since the week of Oct. 8.
Those losses were modest compared with the 3.2% loss suffered by Japan's Nikkei 225 Index ($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.|
|U.S. Dollar Index||81.91||80.68||1.52%||1.72%|
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%|
|Heating oil (-HO)||$3.0055||$2.9554||-1.85%||3.13%|
|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; 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)
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.
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.|
|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%|
|U.S. Dollar Index||81.098||80.886||1.39%||0.72%|
|(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%|
|(in U.S. $)|
|(in Canadian $)|
|(per troy ounce)|
|(per troy ounce)|
|Crude oil (-CL)||$86.07||$85.090||-0.20%||-12.91%|
AND THANKS FOR REJECTING CLASSY LADY FOR BEING TOO VIOLENT.
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.??
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!!
"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."
I am watching MSNBC's talking heads discuss Gen. Petraeus and his affair. The libtards are discussing the need for morality and family values, they did not mention their support of Clinton getting polished in the Oval Office.....
It's just a matter of time before the Dem Party becomes as obsolete as the Repub Party.
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."
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?
deals with our surplus of apostrophe ' s...dont you?
TIWIT, We would prefer losing or winning based on our values. The Democrats have spent decades creating a base that has fallen for the liberal agenda....poverty and the promise of better things to come for a vote....it never happens, all they get is government slavery.
The New Tea Party in 2016 will offer people the opportunity to achieve their dreams free from government dominance.
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.
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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