Stock Market News for December 27, 2012 - Market News
27 December 2012 - 8:06PM
Zacks
A slump in U.S retail stocks and
investor apprehensions about the Fiscal Cliff dragged the
benchmarks lower on Wednesday. This was the third consecutive day
of losses for the benchmarks and a report which showed that U.S.
single-family home prices had increased in October was of no help.
While the S&P 500 suffered its biggest three-day fall since
mid-last month, only the materials sector out of its 10 industry
groups could finish in the green yesterday.
The Dow Jones Industrial Average
(DJI) lost 0.2% to close the day at 13,114.59. The Standard &
Poor 500 (S&P 500) shed 0.5% to finish yesterday’s trading
session at 1,419.83. The tech-laden Nasdaq Composite Index slipped
0.7% to end at 2,990.16. The fear-gauge CBOE Volatility Index (VIX)
jumped 9.2% to settle at 19.48. Consolidated volumes on the New
York Stock Exchange, American Stock Exchange and Nasdaq were
roughly 4.01 billion shares, considerably lower than the daily
average of 6.48 billion shares. Declining stocks easily outpaced
advancers on the NYSE; as for 62% stocks that fell, only 34% stocks
moved higher.
With hardly any major development
regarding the Fiscal Cliff dilemma in the past three trading
sessions, benchmarks have consistently closed in the red during
this period. The S&P 500 logged its largest three-day decline
since November 15, declining 1.5% in the last three trading
sessions.
President Barack Obama and Congress
will be back on Thursday from their short Christmas holiday to
negotiate the Fiscal Cliff issue for the final time. Both President
Obama and House of Representatives Speaker John Boehner have tried
to resolve the Fiscal Cliff issue but they did not succeed in their
efforts. If Congress fails to avert the Fiscal Cliff of $600
billion in spending cuts and tax increases, then it will take
effect from next week and may result in another
recession.
Also weighing on the mood yesterday
was dismal data about holiday season sales. U.S retailers had
expected to post encouraging sales, but it did not happen this time
around. A report from MasterCard Advisors SpendingPulse showed that
U.S retailers witnessed a mere 0.7% increase in sales from October
28 to December 24 compared with the same period in the previous
year. U.S consumer spending accounts for nearly 70% of the economy
and low retail sales in the otherwise promising holiday season is
definitely a matter of concern.
The Consumer Discretionary Select
Sector SPDR (XLY) lost 1.0% and was the biggest loser among the
S&P 500 industry groups. Stocks such as Abercrombie & Fitch
Co. (NYSE:ANF), The Gap Inc. (NYSE:GPS), Amazon.com, Inc.
(NASDAQ:AMZN), Limited Brands, Inc. (NYSE:LTD) and Ralph Lauren
Corp (NYSE:RL) plunged 3.5%, 3.1%, 3.9%, 3.2% and 3.3%,
respectively.
However, the housing sector had
positive numbers to share. The S&P/Case-Shiller Home Price
Indices revealed that both its 10- and 20 city composites increased
in October on a seasonally adjusted basis. According to the report,
the S&P/Case-Shiller composite index of 10 and 20 city
composites surged 0.6% and 0.7%, respectively, in October from
September on a seasonally adjusted basis. However, the
S&P/Case-Shiller composite index of 10 and 20 city composites
both declined 0.1% in October from September on a non-seasonally
adjusted basis. The report also states that the
S&P/Case-Shiller 20-city composite Home Price Index has
increased 4.3% year on year.
The materials sector was the only
sector which ended in the green among the S&P 500 industry
groups for two consecutive days. The Materials Select Sector SPDR
(XLB) gained 0.6%. Stocks such as The Dow Chemical Company
(NYSE:DOW), E I Du Pont De Nemours And Co (NYSE:DD), Monsanto
Company (NYSE:MON), American Vanguard Corp. (NYSE:AVD) and
LyondellBasell Industries NV (NYSE:LYB) added 0.6%, 1.4%, 2.5%,
0.3% and 0.6%, respectively.
AMAZON.COM INC (AMZN): Free Stock Analysis Report
ABERCROMBIE (ANF): Free Stock Analysis Report
AMER VANGUARD (AVD): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
DOW CHEMICAL (DOW): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
LIMITED BRANDS (LTD): Free Stock Analysis Report
LYONDELLBASEL-A (LYB): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
RALPH LAUREN CP (RL): Free Stock Analysis Report
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