Try BlazeTV for Free
News

Market Recap: Stocks Slump in Inevitable Pullback Following Biggest Rally of the Year

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.]

One last thing…
Watch TheBlaze live and on demand on any device, anywhere, anytime.
try premium
Exclusive video
All Videos
Watch BlazeTV on your favorite device, anytime, anywhere.
Try BlazeTV for Free
Sponsored content
Daily News Highlights

Get the news that matters most delivered directly to your inbox.