Market Recap: Stocks Slump in Inevitable Pullback Following Biggest Rally of the Year
- Posted on December 1, 2011 at 4:28pm by
Becket Adams
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Markets closed mixed on Wall Street today:
- Dow -0.21 percent
- S&P -0.19 percent
- Nasdaq +0.22 percent
- Oil -0.37 percent
- Gold -0.06 percent
On the commodities front:
- Oil (NYSE:USO) fell to $99.99 a barrel
- Gold (NYSE:GLD) down slightly to $1,749.30 an ounce
- Silver (NYSE:SLV) didn’t move at $32.81
(Related: Congress Split on Extending Unemployment Benefits and Payroll Tax Cuts)
Today’s markets were mixed because:
1) Mario Draghi: Investors were also focused today on comments from European Central Bank president Mario Draghi who, speaking before the European Parliament, said Europe needs a “new fiscal compact” to ensure that budget rules are respected and enforced.
Some investors interpreted Draghi’s suggestion that “other elements might follow” the compact’s adoption as a hint that the ECB would then be willing to step up its rescue efforts and intervene in euro-zone sovereign debt markets on a large and unlimited basis. Though investors have been clamoring for the central bank to take action, it has been reluctant to prop up government finances, not only because it would risk inflation, but also because it would let profligate nations off the hook for unsound fiscal practices.
2) Unemployment: The number of people filing for initial unemployment benefits rose by 6,000 to 402,000 last week, Labor Department figures showed today in Washington, well above the 390,000 jobless claims economists had been forecasting for the week ending November 26. Markets are now awaiting Friday’s monthly jobs report
3) Autos: Lower gas prices and wider availability of Japanese models made November the American auto industry’s best sales month in more than two years. Today Chrysler, Ford, General Motors, Nissan, and Toyota all reported year-over-year improvements in U.S. sales, with only Honda reporting a decline.
Honda and Toyota were the two companies that experienced the biggest disruptions related to the earthquake and tsunami that struck Japan in March. However, unlike Honda, Toyota has been able to claw its way back, with November sales up 6.7 percent compared to last year. November’s results represent Toyota’s first year-over-year sales increase in the U.S. in seven months.
[Editor’s note: the above is a cross post that originally appeared on Wall St. Cheat Sheet.]
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wbalzley
Posted on December 2, 2011 at 2:48amCongress has begun its assault on the FED:
Report Post »http://www.rawstory.com/rs/2011/12/01/kucinich-bill-seeks-to-end-the-federal-reserve/
Tretka
Posted on December 2, 2011 at 1:10amFiat and digitization have made this a lie. The end game is when the asset calls happen. Mark…my…words.
Report Post »desertdogtom
Posted on December 1, 2011 at 11:09pmA bunch of crooks printing and passing around IOU’s to keep themselves from getting hung when the peoples of nations realize they have been had. This stuff will not end well.
Report Post »kcinco
Posted on December 1, 2011 at 10:29pmDo we see a pattern here? How I wish our economy wasn’t so bloody global.
Report Post »His_Way
Posted on December 2, 2011 at 12:13am“Lower gas prices and wider availability of Japanese models made November the American auto industry’s best sales month in more than two years” Bizarro.
Well I do see that light crude oil is UP today to $100.00 a barrell from Sept’s: $84.00 range. Oh and “Japanese models” made the American auto industry’s best month. I guess this was suppose to be informative and good news -wow and I almost missed it.
Report Post »lukerw
Posted on December 1, 2011 at 8:41pmCome on… when the EU fails… the Money must go somewhere for shelter!
Report Post »Make the Stupid People Shut Up
Posted on December 1, 2011 at 8:40pmThe FED is the largest owner of Stocks, Bonds and Homes in America. It’s all a fraud.
Report Post »The manipulate the market. KEEP OUT
seeker9
Posted on December 1, 2011 at 9:24pmWhen I sell a stock, I could care less who the buyer is as long as there is a buyer. If the price is higher, good for me. If the price is lower, bad for me. Generally, there is very little fraud in stocks. Housing could be entirely different.
Report Post »desertdogtom
Posted on December 1, 2011 at 11:23pmIf you think stocks are not manipulated you are a fool. Stocks rise and fall on rumors, fears, a real increase in value at times and inside information. Electronic trading may be great for brokers that can do the day trading stuff but it really does nothing to enhance the value of the stock. Where the old fashioned ver sion of buying a stock because the company is solid. We bought it Monday because it was down 20% and sold it on Wednesday because it was up 12% over what we bought it for on Monday. No real value was created. Wall Street is betting on the bet then hedging the bet. Wall Street needs some common sense, actual wealth building reforms. No more fast easy money. Real investment in real companies producing real products.
Report Post »gmoneytx
Posted on December 1, 2011 at 5:59pmWhat goes up must come down, Newton discovered that the hard way!
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