Stock Market Watch

Stocks Tumble on Fiscal Cliff Worries

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Stocks extended their losses in late trading to finish at session lows amid ongoing worries over the fiscal cliff. Investors’ sentiment was also weighed down by concerns over the euro zone and geopolitical tensions in the Middle East.

The Dow Jones ended the day 1.45% lower at 12,570.95, the S&P 500 ended the day 1.39% lower at 1,355.49, and the Nasdaq ended the day 1.29% lower at 2,846.81.

Stocks got off to a strong start earlier today as better than expected quarterly results from Cisco Systems Inc. (NASDAQ: CSCO). However, the gains didn’t last long as the initial excitement over Cisco earnings was overshadowed by fiscal cliff worries.

President Obama, speaking at his first news conference since re-election, today said that he is confident that Republicans can join Democrats in avoiding the fiscal cliff. The President said that he was open to new ideas on tax rates; however, he reiterated his stance of raising taxes for wealthy Americans.

All sectors in the S&P 500 fell sharply in trading today. Conglomerates were the worst performers in the S&P 500 today, ending the day 2.42% lower. Industrials also fell sharply in trading today, ending the day 2.19% lower. Basic Materials sector ended the day 2.26% lower.

Among the major movers in trading today were Facebook Inc. (NASDAQ: FB), which ended the day 12.59% higher at $22.36, Cisco Systems, which ended the day 4.81% higher at $17.66, and Apple Inc. (NASDAQ: AAPL), which ended the day 1.11% lower at $536.88.

On the economic front, a report from the Commerce Department showed that retail sales fell in the month of October. A report from the Labor Department showed that produce price index also fell last month. Business inventories rose to $1.61 trillion in September, according to data from Commerce Department.

Earlier today, the Federal Reserve released the minutes of its most recent FOMC meeting. The minutes showed that Fed officials believe that the decision to launch a third round of bond buying program (QE3) in September improved financial conditions.

European markets ended mostly lower today amid worries over the region’s debt crisis. The FTSE 100 Index in London closed 1.11% lower, and the CAC 40 Index in Paris closed 0.89% lower. Asian markets ended mostly higher overnight, with the Nikkei 225 Index closing 0.04% higher, and the Hang Seng Index in Hong Kong closing 1.20% higher.

Oil prices rose sharply today amid geopolitical tensions in Middle East. Tensions in the region heightened after Israel launched a major offensive against Palestinian militants in Gaza.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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