As President Barack Obama holds talks with Congressional leaders on the fiscal cliff, stocks are down across the board.
The president is meeting with House Majority Leader John Boehner and others today to iron out a compromise over spending and tax policies to avoid the fiscal cliff. Even if a deal is reached before the end of the year, tax rises and spending cuts could have a negative effect on states that rely heavily on grants for social programs and communities where many people work for the military or government contractors. The Wall Street Journal reports
that Hawaii and states that are close to the capital will be hardest hit by reduced federal spending.
Stock futures are lower this morning. Dow
(INDEXDJX:.DJI) futures are down 0.23% to 12,493.00. S&P 500
(INDEXSP:.INX) futures slipped 0.19% to 1,348.70, and Nasdaq
(INDEXNASDAQ:.IXIC) futures fell by 0.15% to 2,518.25.
Later this morning, the Federal Reserve is expected to report that industrial production cooled in October after a September comeback. Economists forecast that industrial production rose by 0.2% after rising 0.4% in September
The eurozone's trade surplus widened in September to 9.8 billion euros, helped by surprising export growth from Greece and Portugal.
(NASDAQ:DELL) shares declined 2.5% in pre-market hours after the company's profit fell 47% to $475 million, or $0.27 per share. Revenue was $13.7 billion, down from $15.4 billion last year. The company confirmed that demand for PCs has eroded even further as customers opt for smartphones and tablets rather than replace old machines. Microsoft
(NASDAQ:MSFT) released a new version of Windows late in Dell's fiscal quarter, which ended Nov. 2, but Dell doesn't expect a major bump in sales due to the macro environment.
(NYSE:GPS) announced that earnings in its third fiscal quarter rose 60% to $308 million since it started a recovery plan last year. Strong sales in North America and higher margins supported earnings per share of $0.63. Revenue of $3.86 billion beat forecasts. The retailer raised its EPS guidance for the year to $2.20-$2.25.
(NASDAQ:GOOG) is in talks with Dish Network
(NASDAQ:DISH) to possibly partner on a wireless service. Google is approaching several companies as it explores the possibility of creating a mobile Internet service. Dish has been looking for a partner for building a wireless service since it acquired a slice of the electromagnetic spectrum in 2008.
No positions in stocks mentioned.
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