Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

MARKET SNAPSHOT: U.S. Stocks Swing Up And Down In Cliff Watch

12/06/2012 | 02:12pm US/Eastern

By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks churned between modest gains and losses Thursday, with an optimistic forecast from Broadcom Corp. bolstering technology shares as investors watched fiscal-cliff negotiations.

"It feels like this is going to be a long afternoon. I'm sitting on the edge of my seat waiting for the next rumor, hint of compromise or anything else that comes out of Washington," commented Elliot Spar, market strategist at Stifel Nicolaus, in an emailed note.

"I think this will get resolved, if not by end of the year, by early 2013," Gus Faucher, senior economist at PNC Financial Services Group, said of the automatic steep spending cuts and tax increases slated to begin in January.

The standoff appears to be weighing on business confidence, but "on the other hand consumers don't appear terribly concerned," said Faucher of recent data illustrating consumer sentiment at multiyear highs.

Rising as much as 31 points and falling as far as 26 points, the Dow Jones Industrial Average (DJI) was lately up 11.44 points, or 0.1%, at 13,045.93, with computer-chip maker Intel Corp. (>> Intel Corporation) leading gains among its 30 components.

Intel CEO Paul Otellini, who is retiring in May, on Wednesday said his successor would likely be chosen from inside the company.

The S&P 500 index (SPX) rose 2.94 points, or 0.2%, to 1,412.22, with technology the best performing and industrials the worst of its 10 major industry groups.

Broadcom's (>> Broadcom Corporation) shares rose 1.9%, a day after the chip manufacturer projected fourth-quarter revenue at the upper end of its target range.

Akamai Technologies Inc. (>> Akamai Technologies, Inc.) rallied 9.2% on news that it would jointly sell services with AT&T Inc. (T).

Shares of Safeway Inc. (>> Safeway Inc.) jumped 3.7% after the food-and-drug retailer joined other companies in accelerating its quarterly cash dividend to December to bypass a potential hike in dividend taxes if the fiscal-cliff issue remains in play at the end of the year.

The Nasdaq Composite (RIXF) climbed 15.75 points, or 0.5%, to 2,989.45.

Apple Inc. (>> Apple Inc.) shares reversed higher, lately up 1.7%, a day after shares of the consumer-technology company took their biggest single-day percentage hit since December 2008.

Decliners were just ahead of advancers on the New York Stock Exchange, where 317 million shares traded by 1:50 p.m. Eastern.

Composite volume neared 2 billion.

Oil prices fell to a one-week low after the European Central Bank reduced its growth expectations. Crude for January delivery dropped $1.89 to $85.99 a barrel in New York.

ECB President Mario Draghi told a news conference "weak economic activity is expected to continue into next year."

Treasury prices gained with the benchmark 10-year note's yield falling to 1.566%.

The fiscal-cliff drama does not seem to have investors particularly shaken, at least by one measure of Wall Street uncertainty. The CBOE Market Volatility Index (VIX) fell 3.9% on Thursday to 16.46.

The VIX closed at 26.66 -- its highest finish this year -- on June 1, after an anemic monthly jobs report came in under the gloomiest of expectations, ratting investors. The index has not finished above 20 since late July.

Non-cliff notes

The Labor Department reported jobless claims fell by 25,000 to 370,000 last week to their lowest level in a month.

The weekly data is positive in that it shows the negative impact of the recent superstorm on the labor market to be a temporary one, said PNC's Faucher.

"Expectations were that this would happen, so it's in line with what markets were expecting," Faucher said of the market's muted reaction.

"It's certainly good news. After they rose about 90,000 in the wake of Hurricane Sandy, they are now back to where they were before, so it looks like there won't be any permanent impact from the storm," Faucher said.

The pattern is the same as during 2005's Hurricane Katrina, which was followed by a big spike in claims shortly after the storm hit, with the count of those filing for jobless benefits returning to pre-Katrina levels weeks later, Faucher said.

The weekly data come ahead of Friday's monthly nonfarm payrolls report, with the unemployment rate likely to hold at 7.9% for November.

On Wednesday, stocks mostly advanced, with the Dow Jones Industrial Average (DJI) rising 82 points, after Bloomberg News reported of Republican defections to a bipartisan effort on Capitol Hill to break the budget impasse.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

React to this article
Latest news
Date Title
10:22pDJChina Caixin Service PMI Rose in July
10:20p ANA to get Airbus backing as creditors vote on Skymark sponsor - sources
10:20p MINISTRY OF FINANCE OF REPUBLIC OF INDONESIA : MoF To Make Survey on Organizational Health
10:20p TARGACEPT : August 4, 2015 Targacept Declares Pre-closing Dividend in Connection with its Merger with Catalyst Biosciences, Inc.
10:20p CHINA COSCO : MONTHLY RETURN OF EQUITY ISSUER ON MOVEMENTS IN SECURITIES (July 2015)
10:19pDJAsian Shares Fall on Fed Comments
10:17p DREW : has another record quarter (RV INDUSTRY)
10:16p CHINA JULY SERVICES ACTIVITY QUICKENS TO 11-MONTH HIGH : survey
10:15p Dollar, bond yields rise on Fed rate risk
10:15p HONG LEONG ASIA : Announcements by Tasek Corporation Berhad ("Tasek")
Latest news
Advertisement
Hot News 
MOLYCORP : Japan June Rare Earth Import Up 70%
MIRLAND DEVELOPMENT : Says Russian Portfolio To Drop In Value In Second Quarter
METRO BANCORP : F.N.B. Corporation : Expands Central Pennsylvania Presence with the Acquisition of Metro Bancorp, Inc.
THERAMETRICS : SIX: TMX) announces today that it has completed the acquisition of 38,500,000 of its own shares from its shareholders Pierrel S.p.A. and Fin Posillipo S.p.A.
TRINET : reports 2Q loss
Most Read News
09:21p LA SHERIFF'S DEPARTMENT PAYS $5M TO SETTLE ACCIDENTAL SHOOTING DEATH, BUT REFUSES TO RELEASE COURT-ORDERED CORRECTIVE ACTION PLAN : Osborn Machler
06:01p PENNSYLVANIA LIQUOR CONTROL BOARD : Participates in Annual National Night Out Programs Across the State
07:04p DENSO Partners with Dinex to Launch After-treatment Product Line
07:41p BRC BRITISH RETAIL CONSORTIUM : -nielsen shop price index july 2015 - 27 consecutive months of price falls
08:20p LIN Digital Names Veteran Marketer Thom Allcock as Vice President, Creative Marketing
Most recommended articles
10:20p ANA to get Airbus backing as creditors vote on Skymark sponsor - sources
10:19pDJAsian Shares Fall on Fed Comments
10:16p CHINA JULY SERVICES ACTIVITY QUICKENS TO 11-MONTH HIGH : survey
10:15p Dollar, bond yields rise on Fed rate risk
10:15pDJAsian Shares Fall on Fed Comments