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 3:25PM
avatar

luv it, seems reps and rep CEO'S have the time to comment......its all thats LEFT for them to do other than crying in their bonus money........

 

Data from Star-trek was more human then  their candidate, and poorer and probably could have won

 

Santaryan aint coming this christmas, but after new year your piece of coal will turn into a tax raise.......so voted the citizens of the USA!!!!

Nov 9, 2012 3:24PM
avatar

Obama approval DOWN to 49 days after the election.......

 

Gotta love America, stupid ****s deciding the future for everyone!

Nov 9, 2012 3:22PM
avatar
I would bet significantly that a good percentage of the voters that voted for Obama didn't have a clue about the fiscal cliff that's coming.  Hell, I bet they never even heard the words "fiscal cliff."  Maybe our forefathers were right in only allowing landowners to vote, figuring they knew what was going on.  A significant amount of voters who don't have a clue what's going on is a very dangerous thing for our country.
Nov 9, 2012 3:21PM
avatar
Gomo or Gomer...They don't do the polls in your neighborhood; Sorry..
Nov 9, 2012 3:20PM
avatar
" If we took away the minimum wage — if conceivably it was gone — we could potentially virtually wipe out unemployment completely because we would be able to offer jobs at whatever level." -
Michele Bachmann

Of course she thinks middle class people should work for NOTHING. Slave wages is what she wants.

Is this what the Tea Party wants???
Nov 9, 2012 3:19PM
avatar

Obama's "war on coal",  quote, " your electric bills will necessarily skyrocket".  In that include business and industry. Your purchasing power will go down with less money you have to spent on consumer goods., plus the cost of those goods will rise in price.  And those electric cars will cost a small fortune to charge.  Take note, 43% of electric is generated from coal.  Also refineries use alot of electric to produce gasoline.

Now look out for more taxes for everyone!  Those people getting government hand outs, watch out, the funds will run short as more Americans will go on welfare, you will see cuts in these programs.  The BANK is BROKE!!!!!!!!   Look out for super inflation!!!

Nov 9, 2012 3:18PM
avatar
I wonder who will get hurt the most on the deflection of money into the healthcare complex will be?....... Lets see 30,000,000 people x $50 of deductable = $1,500,000,000 .... out of say Dollar General and into med.
Nov 9, 2012 3:18PM
avatar

Bob in Florida.....Steer away from that Cliff....Don't be a Thelma and Louise..

 

Like Jed's neighbors and friends said, "move away from thar" Hollywood is the place to be.

Nov 9, 2012 3:16PM
avatar
He's going to Malaysia to meet up with Putin!
Nov 9, 2012 3:16PM
avatar
Rally killer, job killer, nation killer
Nov 9, 2012 3:14PM
avatar
Oh..yeah, Brutus; FORGOT to mention PRICELESS and all the buy opportunities out there.
Nov 9, 2012 3:11PM
avatar
As much money as Wall Sreet just gave away because of there little baby fits this week it could have paid off  the fiscal cliff by itself. Who is the stupid in this deal anyway??
Nov 9, 2012 3:10PM
avatar
I have a feeling gained revenue from the top 2% is going to come from closing tax loop holes for this income bracket, instead of raising the rate.....and raising tax rates on some passive income....
Nov 9, 2012 3:10PM
avatar
Ok people rethought things a little. Maybe we should go over the fiscal cliff. Sometimes you got to fall in order to get change. John boehner should stick to his guns. If we go over the cliff yes It will hurt but look at this way your taxes will go up but then you may be able to get food stamps  and join the rest of the bums that voted obama back in office. Sad thought but even  if everthing falls apart  maybe we  can rebuilt our value as A stong nation. Sometimes to get a better house to live in you got tare down the old one. I would rather die standing for something rather than fall for anything. I feel There is a lot of lazy people in this country  who want nother more than to watch you work and then live off what you pay in taxes. Nothing more than bums. So come on John boehner hold your ground. Go down fighting thats what thats what makes this country great.
Nov 9, 2012 3:09PM
avatar

Brutus....Look at the NASD, S&P and RUT2K.....Quit looking at just the DOW..

You might feel a little better...

You know how they are weighted.

Nov 9, 2012 3:06PM
avatar
"Days after victory, Obama steps up to the fiscal cliff"

JUMP!!!!!!!!!!!!!!!
JUMP!!!!!!!!!!!!!!!
JUMP!!!!!!!!!!!!!!!
Nov 9, 2012 3:02PM
avatar
The people spoke in 2008. They spoke again in 2012. John Boehner still isn't listening. Remember the joke about the woman with two black eyes?
Nov 9, 2012 3:01PM
avatar
Big O, now going on an oversea trip. Must be looking for the cliff.
Nov 9, 2012 3:00PM
avatar
better yet tax cut for 98% and tax raise for the 2%
Nov 9, 2012 3:00PM
avatar
Can someone tell me who the ^&%#*ing consumers are they keep polling for this confidence rise ? Do they walk around Donald Trumps neighborhood for this poll ?Or maybe the 90210 zip area?Cause it sure as tihs is not around me anywhere.
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