Market ends lower for 2nd time in 3 weeks

But Apple retakes $600 after earnings and guidance disappoint investors. Amazon shares jump despite a quarterly loss. GDP rises at a 2% annual rate, but consumer optimism slips even as Americans spend more. Gasoline prices continue to drop.

By Charley Blaine Oct 26, 2012 1:03PM
Charley BlaineUpdated: 7:24 p.m. ET

Stocks ended the day little changed, but the major averages finished lower for the second week in the last three.

The market gained strength from technology stocks, which rebounded from early-afternoon lows. Apple (AAPL) was the poster child for the rebound, falling below $600 for the first time since July 30 and climbing from a $591 low to a close of $604, a loss of $5.54. The company's fiscal-fourth-quarter earnings missed Street estimates and its guidance was also lower than expected.

Investors also bid shares of Amazon.com (AMZN) up $15.32 to $238.24 despite the company's loss for its third quarter. Investors are buying into the company's assurances that huge investments now will pay off later.

Financial stocks slipped as investors worried about economic conditions in Europe --Spain's unemployment rate hit 25% -- and the fiscal-cliff impact in the United States. There was some decent news: a better-than-expected third-quarter gain in gross domestic product, the key indicator of economic growth. GDP growth was an annualized 2%, the Commerce Department said, fueled by gains in consumer spending and housing investment.

The Dow Jones industrials ($INDU) closed up 4 points at 13,107. The blue chips had been down as many as 64 points. The Standard & Poor's 500 Index ($INX) ended down 1 point to 1,412, but the Nasdaq Composite Index ($COMPX) was up 2 points to 2,988.

Article continues below.
The Nasdaq-100 Index ($NDX) added 8 points to 2,666. The catalysts included Apple's recovery and Amazon's big gain as well as a big jump in earnings for online travel site Expedia (EXPE). The shares jumped $7.81 to $59.06.

Apple represents about 17% of the market capitalization of the index. Amazon also has a smaller but noticeable influence on the index.

The Dow ended the week down 1.8%. The S&P 500 was down 1.5%, while the Nasdaq fell 0.6%. A loss for October seems likely after four straight monthly gains and monthly losses only in May and June this year. The Dow is down 2.5% for the month, with the S&P 500 down 2% and the Nasdaq off 4.1%.

Despite the declines, the Dow is up 7.3% for the year, while the S&P 500 has gained 12.3%. The Nasdaq is up 14.7%.

Markets for the week



10/26/2012

10/19/2012

% chg.

YTD chg.
Dow Industrials

13,107.21

13,343.51

-1.77%

7.28%
S&P 500

1,411.94

1,433.19

-1.48%

12.27%
Nasdaq 

2,987.95

3,005.62

-0.59%

14.69%
Russell 2000

813.01

821.00

-0.97%

9.73%
Crude oil 

$86.28

$90.44

-4.60%

-12.70%
(per barrel)

0.00

0.00

0.00%

0.00%
U.S. Dollar Index 

80.16

79.69

0.59%

-0.45%
10-yr. Treasury

1.75%

1.77%

-1.02%

-6.47%
Gold

$1,711.90

1,724.00

-0.70%

9.26%

About that GDP growth
U.S. economic growth picked up in the third quarter as a late burst in consumer spending and a surprise turnaround in government outlays offset the first drop in business investment in more than a year.

The stronger pace of expansion, however, fell short of what is needed to make much of a dent in unemployment, and it offers little cheer for the White House ahead of the closely contested Nov. 6 election.

The 2% GDP gain was an improvement over the second quarter's 1.3% pace. A rate in excess of 2.5% is needed over several quarters to make substantial headway in cutting the jobless rate.

The report was a bit better than economists had expected, in part because of a surge in government defense spending that was not expected to last. That combined with the faster pace of household spending and a jump in homebuilding to strengthen domestic demand.

Meanwhile, the Thomson-Reuters/University of Michigan consumer sentiment index dropped from a preliminary reading given earlier this month. Most economists had expected the index to remain unchanged.

Energy prices -- New York close



Fri.     Thur.

Month chg.

YTD chg.
Crude oil (-CL)

$86.28

$86.05

-6.41%

-12.70%
(per barrel)











Heating oil (-HO)

$3.0764

$3.0452

-2.62%

5.57%
(per gallon)











Natural gas (-NG)

$3.7240

$3.7810

12.17%

24.59%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.6417

$2.6323

-9.53%

-0.59%
(per gallon)











Brent crude 

$109.55

$108.49

-0.54%

2.02%
(per barrel)











Retail gasoline

$3.5750

$3.5990

-5.60%

9.13%
(per gallon; AAA)












Crude oil rebounds; gasoline moves lower
Light sweet crude oil (-CL) in New York settled up 23 cents to $86.28 a barrel after being down for much of the day. Brent crude settled up $1.06 to $109.55 barrel. The gains may be due to worries that Hurricane Sandy will disrupt refinery operations in the Northeast next week.

For the week, light sweet crude was down 4.6%. Brent was down 0.5%.

The retail price of gasoline was $3.575 a gallon, down from Thursday's $3.599, according to AAA's Daily Fuel Gauge Report. The price is down 3.8% for the week and 5.6% for the month, although up 9.3% for the year. AAA's national average peaked this year, however, at $3.936 on April 6, which represented a 20.2% increase on the year.

Gold (-GC) gave up early gains and settled down $1.10 to $1,711.90 an ounce. For the week, gold was off 0.7%. Silver (-SI) and copper (-HG) were lower as well.

The 10-year Treasury yield fell to 1.75% from Thursday's 1.828%. The dollar was higher against major currencies.

Citigroup shares slide on news hits
Citigroup
(C) shares fell 81 cents to $36.60 after technology analyst Mark Mahaney was reportedly fired because he improperly disclosed revenue estimates on Google's (GOOG) YouTube business. At the same time, Citigroup agreed to a $2 million fine imposed by Massachusetts regulators after a junior analyst emailed two employees at a technology website seeking feedback on a Facebook (FB) document containing a senior analyst’s views and estimates.

At the same time, The New York Times reported that Vikram Pandit's departure as CEO on Oct. 15 was hardly his choice. Instead, he was offered the choice of resigning immediately or at the end of the year. Or being fired immediately.

The coup was orchestrated by Chairman Michael O'Neill, who became increasingly convinced Pandit, who wasn't a banker by training, was the wrong person for the job. Probably what tipped the issue was in March when the Federal Reserve denied Citigroup permission to raise its dividend.

Merck shares slip; Moody's jumps
Shares of pharmaceutical giant Merck (MRK) were off 15 cents to $46.15. The company said its third-quarter profit rose 2% to $1.76 billion, or 56 cents a share, from $1.72 billion, or 55 cents a share, in the year-ago quarter. Adjusted profit edged up to 95 cents a share from 94 cents. Sales fell 4% to $11.5 billion from $12 billion. But the strong dollar depressed non-U.S.results. Excluding the currency effect, sales were comparable to year-ago levels.

Goodyear Tire & Rubber (GT) slumped by $1.28 to $11.02 after the company said weak demand in Europe held earnings back. Dealers on the continent are still working through excess winter tire inventory from last year..

Cable-and-broadcast operator Comcast (CMCSA) added $1.20 to $37.56. The majority owner of NBC said third-quarter profit more than doubled, boosted by advertising revenue, the sale of assets and a decrease in the loss of subscribers.

Moody's (MCO) added $2.17 to $47.89 after saying profit increased by 41% as companies took advantage of record investor demand and low borrowing costs by issuing debt.

Software developer CA (CA) fell $2.17 to $22.73. The company said it sees a 1% to 3% decline in full-year growth after it adjusted for currency fluctuations, down from a prior estimate of 1% to 2% growth. CA cited a 14% decline in second-quarter bookings due to lower sales in its enterprise solutions unit and lower mainframe capacity revenue. 

Deckers Outdoor
(DECK) tumbled $6.01 to $29.48 after cutting its forecast for annual sales growth by almost two-thirds amid declining demand for its UGG sheepskin boots.

Short hits from the markets -- New York close



Fri.

Thur.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.1100%

0.110%

22.22%

1000.00%
5-year Treasury note 

0.761%

0.819%

20.79%

-8.31%
10-year Treasury note

1.750%

1.828%

6.90%

-6.47%
30-year Treasury bond

2.918%

2.981%

-3.76%

1.00%
Currencies











U.S. Dollar Index

80.156

80.118

0.16%

-0.45%
British pound

1.6098

1.6126

-0.39%

3.61%
(in U.S. $)

 








U.S. $ in pounds

£0.621

£0.620

0.39%

-3.48%
Euro in dollars

$1.29

$1.29

0.66%

-0.14%
(in U.S. $)

 








U.S. $ in euros

€ 0.773

€ 0.772

-0.66%

0.14%
U.S. $ in yen 

79.74

80.35

2.28%

3.43%
U.S. $ in Chinese

6.28

6.24

0.00%

-0.70%
yuan











Canada dollar

$1.002

$1.006

-1.40%

2.18%
(in U.S. $)

 








U.S. dollar 

$0.998

$0.994

1.50%

-2.14%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,711.90

$1,713.000

-3.50%

9.26%
(per troy ounce)

 








Copper (-HG)

$3.550

$3.5505

-5.53%

3.32%
(per pound)

 








Silver (-SI)

$32.036

$32.078

-7.35%

14.76%
(per troy ounce)

 








Wheat (-ZW)

$8.6375

$8.7275

-4.29%

32.32%
(per bushel)

 








Corn (-ZC)

$7.3775

$7.420

-2.45%

14.11%
(per bushel)

 








Cotton 

$0.7242

$0.727

2.51%

-21.01%
(per pound)

 








Coffee

$1.5775

$1.610

-9.08%

-31.31%
(per pound)

 








Crude oil (-CL)

$86.28

$86.050

-6.41%

-12.70%
(per barrel)










 

353Comments
Oct 26, 2012 1:50PM
avatar

Business loves immigration, both legal and illegal. They like the cheap labor and increased demand for their products.

I would like to see all immigration and foreign work visas completely stopped immediately. We have enough people here now and we can do our own work. Even at our current 310 million population there are shortages of fuel, water, and decent housing in our cities, etc.. How many do they want 500 million, 800 million. Think what a mess that will be. 

Oct 26, 2012 1:27PM
avatar
Oil goes down when the economy is crap - so says the leader...
Oct 26, 2012 1:58PM
avatar
Heartache: David Letterman "Discouraged" By Obama's Lies

Even he is over it - Maybe late to the facts, but facts are facts and as the leader says - Trust is an issue.
Oct 26, 2012 2:35PM
avatar

dingbatblonde says - with most of the media being right wing these days

 

This must be the stupidest statement I have ever heard.

Oct 26, 2012 1:52PM
avatar

Since I'm all into help create & support small businesses, I'm getting involved with those who are on SSI & SSDI to help them becoming independent and raise their standard of living above the poverty line either in being self employed or employed by others.

 

The following is reposted for the afternoon folks:

 

Ok- the blamee brought up a important point- going broke for 1st qtr. 2013. Well- if you receive government benefits like SSI & SSDI, then you can apply for a PASS plan(Plan for Achieving Self Support) and/or PESS Plan (Property Essential to Self Support). You need to contact your local SSA office & local Community Work Incentives Coordinators (CWIC's) to guide you to identify and utilize all available work incentives. All states have WIPA projects (Work Incentives Planning & Assistance). Your local offices for Vocational Rehabilitation can help pay for some of these & with the right guidance, still be able to acquire these tools we need for running a business without jeopardizing your cash benefits from SSDI & SSI.

 

With the help of the above services, you'll reach a point in your business that you will no longer need or want government assistance. There is a way out of poverty!

Oct 26, 2012 2:12PM
avatar
Good thing Trump didn't offer $5 mil to obummer to bow down to the Saudi King again.... he would be out some money.
Oct 26, 2012 2:23PM
avatar
Good thing Trump didn't offer obummer $5 mil to insult the Israels again........ he would be out some bucks for sure.
Oct 26, 2012 2:27PM
avatar
The Free Phone known as the Obama Phone:

“Carlos Slim, who has an estimated net worth of $70 billion, owns a controlling stake in TracFone, which makes $10 per phone for each device it provides to poor Americans. The company, whose president and CEO is Frederick ‘F.J.’ Pollak, also makes money from extra minutes and data plans it sells to subscribers who get phones and service through the government’s Lifeline program.”

Oct 26, 2012 2:36PM
avatar
i wonder if SASHA AND MELIA have seen the dunhan commercial yet?

they would be SO PROUD OF THEIR FATHER

I AM BARACK OBAMA  AND I APPROVE  THIS MESSAGE
Oct 26, 2012 1:50PM
avatar
LostonPluto said;
"I'm retired and am not losing any money. I'm making money in my savings account! Only idiots take risks with their money. What a pity you are!"

Retired since birth???
Hey lost, I hate to Pizz on your parade, but Welfare isn't actually considered retirement.
Oct 26, 2012 1:58PM
avatar

What a load of Koo......... smells in here.

Oct 26, 2012 1:20PM
avatar

Don't forget to go out today and throw your money away on that latest Microsoft piece of junk called Windows 8.

 

Will Microsoft ever make another great OS? I doubt it!

 

Long live Windows XP!

Oct 26, 2012 2:21PM
avatar
Would never purchase and Apple product.  Obama, thanks Apple is going to save the econonmy.  Who going to pay their phone bills.  Guess that hid in the healcare bill as well.
Oct 26, 2012 1:52PM
avatar
I personally will not cry either way.

If one guy get's elected - I let a couple guys go and I have an investment for that.

If the other guys get's in - I'll do the wait and see thing... ...
Oct 26, 2012 1:10PM
avatar

I sure hope the Dow ends below 13,000 today.

 

DIE FRAUD STREET, DIE!

Oct 26, 2012 2:20PM
avatar

hey these headlines are always sooooo predictable, why bother showing up here, I mean wait a couple of days and you see the same thing,

 

meanwhile back in Realityland, look at this! early voting has turned up some, you ready for this? voter fraud!! some people's vote for Romney mysteriously turned into a vote for obama, fancy that?? meanwhile you libs can try this bullshiiiit all you want you're always caught anyway, but is this surprising?? of course not! not when you know what this pig democrapic filth commie scum in office is all about, what's the matter libs? is there anything you can win without cheating or bribing?? of course not, a rhetorical question, I know, I know....

 

oh and who won the debates in all actuality?? 49 Romney 41 osama 'nuff said 'bout that

and if I may add, aren't you loonie libs, especially on this loony lib site, worried 'bout all the thumbs down you rantings and ravings are getting? you'd think you guys would be getting so many "up" if your messiah is so gonna win,  so many thumbs down, sooo many that will be votin' in Nov, wha happon?????

Oct 26, 2012 3:02PM
avatar

LostonPluto said;

"Vote for Obama and avoid a Revolution!

 Vote for Romney and ensure a Revolution!"


Right on Lost!!!!!!!!!!!!!!!!!!!!!!!!!!!!

We NEED a Fiscal Revolution!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Oct 26, 2012 2:36PM
avatar
What's Obama going to do when the storm hits the East Coast Sunday?

Will Biden claim "We didn't know it was a Hurricane! Our intel never told us it was a Hurricane!"?

Will he throw the Bank at them, after his 2008 "Where's yo Dallah" speach?

Or will he even have time to address it with his busy campaign schedule?
Oct 26, 2012 3:24PM
avatar

DitzyBlonde said;

"MISTER KYTE:When did you flunk out of school.As my husband says:"an empty

garbage truck makes a lot of noise"You should share a jail cell with Jerry Sandusky".


For what just exactly? Disagreeing with your buffoonery?

And as for the "Empty Garbage Truck" comment. 

It would appear that an "Empty Head" does as well...... 


My condolences to your husband. If he has to listen to you all night long, it's far more likely that he'll be the one in the jail cell...........

Oct 26, 2012 1:40PM
avatar
V_L:...

I think the increase in TP prices has to do with the DNC ground game.
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