Back to top

Market News

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Markets ended lower for the second consecutive day as Republicans and Democrats continued to debate the Fiscal Cliff issue. Meanwhile, President Barack Obama once gain emphasized on increasing the tax rates for rich Americans. Industrial sector was the biggest gainer, whereas utilities lost the most among the S&P 500 industry groups.   

The Dow Jones Industrial Average (DJI) lost 0.1% to close the day at 12,951.78. The Standard & Poor 500 (S&P 500) dropped 0.2% to finish yesterday’s trading session at 1,407.05. The tech-laden Nasdaq Composite Index shed 0.2% to end at 2,996.69. The fear-gauge CBOE Volatility Index (VIX) gained 2.9% to settle at 17.12. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 5.86 billion shares, significantly lower than the daily average of 6.48 billion shares. Declining stocks beat advancers on the NYSE; as for 49% stocks that declined, 47% stocks moved higher.

Benchmarks ended in negative territory for the second consecutive day. Lack of progress on the Fiscal Cliff issue gave investors no reason to place their bets yesterday. Stocks oscillated between small gains and losses on Tuesday. Over the past few days, markets have been moving on the basis of developments regarding ongoing negotiations about the Fiscal Cliff.

Republicans had proposed raising $800 billion in additional tax revenue. The plan also included reducing $600 billion from health care programs and cutting $300 billion from both other mandatory spending and discretionary spending. Last week, Republicans rejected Treasury Secretary Timothy Geithner’s proposal of raising tax revenues by $1.6 trillion over the next 10 years. If Congress fails to seal a deal on the issue, then it will take effect in less than four weeks and most likely cause another recession.

Yesterday President Obama rejected the Republican plan about the Fiscal Cliff. Last week, Republicans had rejected President Obama’s plan and proposed a new plan. Obama called the Republican plan as “out of balance” and insisted on increasing tax rates for rich Americans. Obama said: “We’re going to have to have higher rates for the wealthiest”. He also said that no deal will be reached until Republicans agree to increase tax rates for rich Americans.
    
President Barack Obama is scheduled to meet corporate chief executives on Wednesday to discuss the issue. Corporate chief executives are also looking for a decrease in tax rates for their companies. The CEO of Boeing Company (NYSE:BA) will head the group and he said that they want “a balanced solution to the nation's fiscal cliff and long-term deficit and debt issues ... including meaningful and comprehensive tax and entitlement reforms”.

Coming to the sectors, Industrial Select Sector SPDR (XLI) gained 0.4% and was the biggest gainer among the S&P 500 industry groups. Looking at XLI’s top ten holding companies, General Electric Company (NYSE:GE), United Technologies Corporation (NYSE:UTX), United Parcel Service, Inc. (NYSE:UPS), Deere & Company (NYSE:DE) and Emerson Electric Co. (NYSE:EMR) surged 0.2%, 0.4%, 1.1%, 0.3% and 0.3%, respectively.

The Utilities SPDR (XLU) was the biggest loser among the S&P 500 industry groups. Stocks such as Exelon Corporation (NYSE:EXC), Public Service Enterprise Group Inc. (NYSE:PEG), The Southern Company (NYSE:SO), Entergy Corporation (NYSE:ETR) and PPL Corporation (NYSE:PPL) lost 1.0%, 0.4%, 0.6%, 0.7% and 0.4%, respectively.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%