Join        Login             Stock Quote

Stocks Lower Again As Deal Hopes Fade

 December 28, 2012 03:12 PM

The market is lower again in early trading as hopes for a deal to avoid the fiscal cliff fade.  The market did get a pop from its early lows when a headline came across that Obama was going to propose a new plan which would scale back budget plans and renew tax cuts for all but top earners.  But this headline isn't really new, and I suspect the positive reaction will fade.

Although the action has been negative lately as hopes for a deal fade, longer term it might work out better as whatever deal that gets reached will have had more time to hatch vs. a hastily slapped together deal.  We have also not heard anything about the debt ceiling expiring.

In economic news, pending home sales rose 1.7% in November.  Also, the Chicago PMI rose to 51.6 in December from 50.4 the prior month.

[Related -Demand For Safe-Haven Bonds Surged Last Week]

Asian markets were higher across the board overnight, led by a 1.2% gain in China.  But European markets are lower amid weak economic data.  French GDP was revised lower to 0.1% in Q3.  Spanish retail sales declined -7.8% yr/yr.  And Italy auctioned off 5- and 10-yr debt, but was only able to place 5.88 billion euros of the 6 billion target.  10-year notes garnered a yield of 4.48%, slightly above the November auction's yield of 4.45%. 

The dollar is up a little today, and most commodities are weak. Oil prices are a bit lower to $90.70, and gold prices are lower near $1656.  Silver and copper prices are lower as well.

The 10-year yield is flat near 1.71%.  And the volatility index (VIX) continues to creep higher, up 3.6% today to 20.18.   These are levels we haven't seen since July.  But at that time the market was starting to move higher. 

[Related -Thoughts on MetLife and AIG]

Trading comment:  The S&P 500 had a late rally yesterday to recapture its 50-day average.  It would have been a positive if the market could have built on that positive reversal and added to it today.  It's still early, so anything could happen, but so far the market is weak again and the SPX is falling back below that 50-day support.  Volume is also light on this Friday ahead of the New Year's weekend.  Although the market is open on Monday, many traders might just pack it in and take a long 4-day weekend. 



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageDemand For Safe-Haven Bonds Surged Last Week

The crowd piled into investment-grade bonds last week as economic worries triggered an exodus out of risky read on...

article imageThoughts on MetLife and AIG

In some ways, this is a boring time in insurance investing.  A lot of companies seem cheap on a book and/or read on...

article imageA 2016 Recession Would Be Different

If the US or the Eurozone entered a recession this year, a few macroeconomic variables would look very read on...

article imageWhat's Next For Chipotle?

After stumbling badly on negative publicity about foodborne illness at some of its restaurants, the fast read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

A 2016 Recession Would Be Different
More Articles on: Finance

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.