Markets Continue November Slide With Wednesday Drop
Wall Street saw the November selloff continue Wednesday, intensifying losses on increased afternoon volume as fiscal cliff fears dominate every water cooler conversation. There is just so much uncertainty everywhere; can Washington please get its act together?! In the meantime, the economy is being artificially hampered by these clowns. Both the Dow & Nasdaq are now at their lowest level since late June, while the S&P is at late July levels. The Dow Jones Industrial Average fell 185.23 points, or 1.45%, to 12,570.95 at the close for its third consecutive decline. 29 of the 30 components finished in the red, with only positive earnings from Cisco Systems Inc. (CSCO) going green. The blue chips are now up less than 3% year to date. The S&P 500 dropped 19.04 points, or 1.39%, to 1,355.49, with industrials the hardest hit our of the 10 industry sectors, all of which closed in the red. The S&P 500 has fallen 5.1% in the six sessions since election night. The Nasdaq Composite lost 37.08 points, or 1.29%, to 2,846.81.
Despite the decline in equities, crude posted a strong advance on concerns over Mid East supplies. Crude for December delivery rose 94 cents, or 1.1%, to settle at $86.32 a barrel on the NYMEX.
The October Producer Price Index (PPI) came in at the low end of the consensus range, falling 0.2 percent, following a 1.1 percent jump in September. The consensus forecast a 0.2 percent increase. The core rate, which excludes both food and energy, declined 0.2 percent in October after being unchanged the prior month. Analysts projected a 0.2 percent rise for October. For the headline number, the year-ago seasonally adjusted rate in October posted at 2.3 percent after 2.2 percent in September. The core rate in October came in at 2.1 percent, compared to 2.3 percent the prior month.
Consumer spending declined in the month of October. Total retail sales on the month declined 0.3 percent after jumping 1.3 percent the month before, which was a an increase from the original report of1.1 percent. Market expectations were for a 0.1 percent dip.