Edition: Global Global Select Region
Email: Passwd: or sign up free
One News Page
One News Page > Business > U.S. stocks mixed as Dow, S&P 500 rise, Apple weighs on Nasdaq
Open news article

U.S. stocks mixed as Dow, S&P 500 rise, Apple weighs on Nasdaq

Proactive Investors
Wednesday, 5 December 2012

U.S. markets were mixed Wednesday early afternoon, as the Dow and S&P 500 reversed course to post gains on China action and US economic data, while the Nasdaq was dragged down by Apple (NASDAQ:AAPL). 

Meanwhile, investors remained firmly focused on the budget drama that continued to drag on on Capitol Hill, where House Speaker John Boehner today said he was willing to meet with President Barack Obama at any time to resolve the looming, so called fiscal cliff. 

The fiscal cliff refers to the $607 billion in automatic tax hikes and spending cuts set to take effect in January. 

According to media reports, Obama said in remarks before the Business Roundtable that he rejects the GOP plan to extend middle-class taxes, while Republicans are demanding that the president send a new proposal to Congress. Obama has said there would be no deal without higher taxes on the wealthy. 

Earlier Wednesday, global markets rallied as China's new leaders called for policy continuity and stability in the first official assessment of the Chinese economy following November's leadership handover.

The Dow was lately up by 102 points to 13,054, the S&P 500 rose 4 points to 1,411, and the Nasdaq was down by 14 points to 2,983, weighed down by Apple. 

On the economic front, ADP estimated Wednesday that the country added 118,000 private sector jobs in November, as 114,000 services jobs were created, with the numbers exactly in line with estimates. The estimated gain from September to October was revised down slightly from the initial estimate of 158,000, to 157,000. The decline October to November was largely due to the disruption caused by Hurricane Sandy. 

Elsewhere, third quarter productivity was revised up to 2.9% from an initial estimate of 1.9%, the fastest pace in two years. Economists surveyed by MarketWatch expected productivity to be revised up to 2.8% in the first of the government's two updates to the third-quarter report. 

Unit labor costs were revised down to an annualized 1.9% decrease, compared to the original estimate of down 0.1%, and following a 0.5% decline in the second quarter. Expectations were for a 0.9% decrease. Productivity measures the growth of labor efficiency in producing the economy's goods and services. 

Also Wednesday, the Institute for Supply Management’s November nonmanufacturing index picked up steam in November but the gains did not lead to new hiring. The ISM's index rose five tenths to 54.7 with business activity over 60 for the first time since February. Economists anticipated a decline to 53% in November from 54.2% in October. 

New orders are near 60 at 58.1 for a more than three point gain and the best reading since March. 

Meanwhile, the Commerce Department reported factory orders unexpectedly rose 0.8% in October.

Apple (NASDAQ:AAPL) was lately dragging down the tech-heavy Nasdaq index, after International Data Corp reported Apple's share of the global tablet market will slip in 2012 to 53.8% from 56.3%, while Google's (NASDAQ:GOOG) Android share is expected to rise. Share in the iPad maker fell more than 4% Wednesday.

In other corporate news, Citigroup (NYSE:C) Wednesday announced it will cut over 11,000 jobs worldwide in order to save over $1.1 billion a year starting in 2014.

As a result of the cuts, Citigroup said it expects to record pre-tax charges of about $1 billion in the fourth quarter and roughly $100 million of related charges in the first half of 2013.

The company also said it expects to generate $900 million in savings in 2013 and that the cuts will have a negative impact on annual revenues of less than $300 million. New chief Michael Corbat said the cuts come as part of the company’s strategy to identify areas and products that are not providing meaningful returns. 

Shares of Citi advanced on the news, rising almost 6% to $36.33. 

Nokia Corp. (NYSE:NOK) rose 8% after the Finnish company said it is partnering with China Mobile Ltd. to launch a new Windows-based Lumia phone for the China market. 

Western Digital Corp. (NASDAQ:WDC) shares rose over 6% after the hard-disk manufacturer announced an accelerated dividend.

Facebook (NASDAQ:FB) shares also gained ahead of it joining the Nasdaq-100 index next week. 

Pandora Media’s (NYSE:P) shares tumbled over 17 per cent Wednesday, after it predicted a loss in the fourth quarter when reporting its third quarter results late Tuesday.

Mineral producer Freeport-McMoRan Copper & Gold (NYSE:FCX) said today that it has agreed to buy Plains Exploration & Production Company (NYSE:PXP) and McMoRan Exploration Co. (NYSE:MMR) for around $6.9 billion in cash and stock and $3.4 billion in cash, respectively. 

The combined company is expected to create a "premier U.S.-based natural resource company". McMoRan and Plains Exploration shares rallied, while Freeport's shares declined more than 13%. 

Chelsea Therapeutics (NASDAQ:CHTP) plunged over 35% after regulators said a trial would help the company gain approval for its fainting drug. 

*Commodities *

Gold for February delivery declined again after a sharp decline in the previous session, lately down $1.00 to $1,695 an ounce. Oil for January tumbled 32 cents to $88.19 a barrel. 


European markets finished higher today with shares in Britain leading the region. The FTSE 100 gained 0.39% while France's CAC 40 rose 0.28% and Germany's DAX rallied 0.26%.
Share on FacebookShare on Twitter Comment
Source: IBTimes.com - on December 14, 2012

News video: Apple Weighs on the Nasdaq While Continuing 'Fiscal Cliff' Negotiations Drag Down Wall Street

Apple Weighs on the Nasdaq While Continuing 'Fiscal Cliff' Negotiations Drag Down Wall Street

The S&P 500 ended its six-day winning streak on Thursday (December 13), retreating as worries intensified that Washington's "fiscal cliff" negotiations were dragging on with little progress. Anxiety about the drawn-out talks between Democrats and Republicans was enough to offset encouraging data...

You Might Like

Other recent news in Business

Yum Brands' first-quarter restaurant sales in CHINA up 9 percentAereo CEO Speaks Out About SUPREME COURT Case
Amazon's SALES Dropped By 10% In States Where It Had To Start Charging SALES Taxes (AMZN)In AEREO, Supreme Court expresses concern for cloud computing – but doubt over tiny antennas
Existing HOME SALES Decline SlightlyTESLA's (TSLA) Plans For China Plant Will Lower Costs For Hip Beijing Drivers
David Moyes Is Out As Manager Of Manchester UNITEDHappy EARTH DAY: Boost Your Memory Just By Going Outside
Tuesday's most followed in U.S. including Netflix, Harley-Davidson, Allergan, McDonald's, COMCAST, Xerox, Facebook, Lexmark, TravelersOn EARTH Day, Apple exec gets to core of environmental initiative



comments powered by Disqus

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2014 One News Page Ltd. All Rights Reserved.  |  About us  |  Press Room  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
One News Page - Top Headlines RSS Feed RSS  |  News for my Website  |  Free news search widget  |  Advertise  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |  One News Page on Facebook LIKE us on Facebook  One News Page on Twitter FOLLOW us on Twitter  One News Page on Google+ FIND us on Google+

Bullet: One News Page official news app for iPhone Bullet: Our news app for iPhone