Early gains from President Obama's presidential victory were quickly given back in the morning as the market rejected the idea of four more years under him. Individual sectors such as coal (read: carbon tax), health care (read: Obamacare), and dividend (read: higher interest taxes) stocks struggled. However, the main impact for the market came from uncertainty over Greece's further austerity cuts and the vote scheduled for this afternoon.
Crude oil struggled notably today after gaining a little over 3% yesterday. Crude oil futures fell more than 4.2%, solely on a lack of demand. Estimates for a triggering of the fiscal cliff forecast a 1% slowdown in GDP over 2013. Technical levels in the S&P 500
(INDEXSP:.INX) were broken today near 1395; the next logical support level is at 1375. Demand for the Treasury's $24 billion 10-Year Note auction was weaker than expected, but bonds failed to mount any serious sell-off after the auction.
As it pushed midnight in Greece, the Parliament had yet to come to a decision. The vote will determine the payment of 31 billion Euros in aid to Greece from the EU, staving off the potential of default in the short-term.
After the close, Qualcomm
(NASDAQ:QCOM) beat earnings and raised earnings and revenue guidance for the coming quarter and 2013 by as much as 8%. Qualcomm rose more than 7% in post-market trading.
Tomorrow's Financial Outlook
Tomorrow morning the ECB will release its monthly rate decision. There isn't much Mario Draghi can say to boost the markets because his hands are tied by European leaders. Economists are overwhelmingly expecting no change in the interest rate at 0.75%, but there is always the outside chance that the central bank may cut rates.
Weekly jobless claims for the US will be released tomorrow morning. It is very likely that the claims data will be distorted due to Hurricane Sandy.
In earnings, Monster Worlwide
(KSS), Advance Auto Parts
(AAP), Duke Energy
(NVDA), Energizer Holdings
(MCP), and Groupon
(GRPN) will report.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.