Stock Market News for November 19, 2012 - Market News
19 11월 2012 - 6:06PM
Zacks
Markets finally finished in the
green on Friday after Congressional leaders hinted that the “fiscal
cliff” meeting with President Barack Obama had gone well.
Benchmarks have taken a battering ever since this problem came to
the forefront, but a positive outcome on Friday instantly steered
the benchmarks out of four days of consecutive losses. However, the
gains on Friday were not sufficient to completely erode the week’s
losses.
The Dow Jones Industrial Average
(DJI) gained 0.4% and closed at 12,588.31. The Standard & Poor
500 (S&P 500) ended 0.5% higher at 1,359.88. The tech-laden
Nasdaq Composite Index added 0.6% to finish Friday’s trading
session at 2,853.13. The fear-gauge CBOE Volatility Index (VIX)
slumped 8.9% to settle at 16.41. Advancers easily outpaced the
decliners on the New York Stock Exchange (NYSE); as for 73% stocks
that gained, 25% stocks closed lower. Total volume on the NYSE was
4.1 billion shares.
The gains, which were mostly a
result of “constructive discussions” at the White House regarding
the fiscal cliff, were not enough to steer markets out of weekly
losses. Through the week, investor sentiment had been bogged down
due to apprehensions over this issue. For the week, the Dow,
S&P 500 and Nasdaq lost 1.8%, 1.5% and 1.8%, respectively. In
fact, investors have been worried about the fiscal cliff since
Election Day and benchmarks have lost roughly 5% from November
4.
If Washington fails to reach a deal
regarding tax hikes and budget cuts, experts project that the
economy may slip into another recession. The $600 billion deficit
reduction plan is slated to be effective by the start of 2013.
Thus, leaders need to take effective measures to avoid the fiscal
cliff at the earliest. Fortunately, the recent White House meeting
offered hope after Senate Majority Leader Harry Reid and House
Speaker John Boehner spoke of “constructive” discussions. Though
Friday’s gains failed to save markets from suffering weekly losses,
optimism about a timely resolution to the fiscal cliff helped
benchmarks rebound from the day’s initial declines.
At the meeting, Democrats supported
the spending cuts and Republicans were ready to put “revenue on the
table”. Striking a positive note and highlighting constructive
discussions, House Speaker John Boehner commented: “It is going to
be incumbent for my colleagues to show the American people that
we're serious about cutting spending and solving our fiscal
dilemma… I believe that we can do this and avert the fiscal cliff
that right in front of us today”.
On the other hand, the situation
remained tense in the Middle East. Reportedly, areas near Jerusalem
and Tel Aviv were hit by Palestinian missiles. The attack on
Jerusalem came decades after the last such incident was noted
during the 1967 Middle East war. The violence in the Middle East
gave birth to apprehensions over oil supplies being affected. On
the New York Mercantile Exchange, crude futures for December
delivery jumped 1.4% to $86.67 per barrel.
The energy sector added modest
gains and the Energy Select Sector SPDR (XLE) was up 0.4%. Among
the energy stocks, Chevron Corporation (NYSE:CVX), Exxon Mobil
Corporation (NYSE:XOM), ConocoPhillips (NYSE:COP), Western
Refining, Inc. (NYSE:WNR) and Marathon Oil Corporation (NYSE:MRO)
added 0.8%, 0.4%, 0.8%, 1.2% and 1.1%, respectively.
Separately, the Board of Governors
of the Federal Reserve System reported a 0.4% drop in industrial
production in October. The decline came after a 0.2% rise in
September and was contrary to consensus estimates of a 0.1% gain.
Hurricane Sandy seems to have had its impact and its effect will be
felt in several sectors. In keeping with this theme, the report
stated: “Hurricane Sandy, which held down production in the
Northeast region at the end of October, is estimated to have
reduced the rate of change in total output by nearly 1 percentage
point. The largest estimated storm-related effects included
reductions in the output of utilities, of chemicals, of food, of
transportation equipment, and of computers and electronic
products”.
As for corporate results, tech
heavyweight Dell Inc. (NASDAQ:DELL) reported a very dismal
third-quarter performance. Earnings slumped heavily from the
prior-year quarter and even revenues dropped over 10% year on year.
The fourth-quarter outlook provided by Dell also disappointed
investors as the company estimated macroeconomic challenges would
continue to hurt its business. Dell’s shares slumped 7.3% following
the dismal results. However, the technology sector ended in the
green and the Technology Select Sector SPDR (XLK) added 0.1%. Among
the technology stocks, Apple Inc. (NASDAQ:AAPL), International
Business Machines Corporation (NYSE:IBM), Cisco Systems, Inc.
(NASDAQ:CSCO), Oracle Corporation (NASDAQ:ORCL) and Intel
Corporation (NASDAQ:INTC) gained 0.4%, 0.6%, 0.3%, 0.2% and 0.8%,
respectively.
APPLE INC (AAPL): Free Stock Analysis Report
CONOCOPHILLIPS (COP): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
DELL INC (DELL): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
MARATHON OIL CP (MRO): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
WESTERN REFING (WNR): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
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