A day after the stock market recorded its worst session of the year, trading remained choppy, with the Dow Jones Industrial Average
(INDEXDJX:.DJI) registering gains in the morning before sliding back into the red again by midday.
Despite better-than-expected initial jobless claims numbers for last week and a decrease in the US trade deficit in September, the Dow was down 0.23% to 12,903.21 points as of 11:43 a.m. EST.
"Psychologically the market is going to take some time to repair yesterday's damage ... the next four or five days before we begin to consolidate," Peter Cardillo, chief market economist at Rockwell Global Capital, told The Street
. "The market is focused very much on the fiscal cliff right now. I'm looking at some kind of agreement on the extension of tax cuts -- more or less another patch job. Eventually it will be worked out. In the meantime, the market is going to be subject to that fear factor of the fiscal cliff, and of course Europe."
Dow financials were on the recovery path after yesterday’s heavy sell-off. Bank of America
(NYSE:BAC) was up 2.82% to $9.49, while JPMorgan
(NYSE:JPM) rose 0.70% to $40.76. American Express
(NYSE:AXP) (+0.56% to $55.87) and Travelers
(NYSE:TRV) (+0.96% to $69.37) also inched up a notch. The bellwether Financial Select Sector SPDR ETF
(NYSEARCA:XLF), which tracks all financial stocks in the S&P 500
(INDEXSP:.INX), gained 0.26% to $15.65.
(NYSE:BA) also advanced 1.33% to $71.04. Earlier in the day, Sterne Agee analyst Peter Arment affirmed his $87 target and Buy rating on Boeing, saying that the aerospace giant would be able to maintain its sales margins even if the government cut defense spending because it was well-prepared for a slowdown.
Energy companies continued to take a beating after yesterday’s decline, with Chevron
(NYSE:CVX) falling 0.83% to $106.62 and ExxonMobil
(NYSE:XOM) dipping 0.24% to $87.97 on worries of a weak macroeconomic outlook, which could push demand for crude down.
(NASDAQ:CSCO) fell 1.73% to $16.91. The company will report quarterly earnings on Nov 13. Wall Street expects quarterly net income to come in at $0.41 a share and revenue of $11.8 billion.
(NYSE:VZ) was also down on the day, sliding 1.02% to $42.75.
No positions in stocks mentioned.
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