Movement in the US stock market continued to be limited as Democrats and Republicans have gained little traction in reaching a deal on tax and budget policy to avert the so-called “fiscal cliff.”
"Support (for the market) is based on a belief that Washington will come to some agreement before we go over the fiscal cliff," Art Hogan, managing director of Lazard Capital Markets in New York, told Reuters
. "On the first show of flexibility from either side, we'll get a relief rally."
The Dow Jones Industrial Average
(INDEXDJX:.DJI) was down 0.06% to 12,957.35 points as of 12:09 p.m. EST.
Leading gainers on the Dow today were Intel
(NASDAQ:INTC) (+1.27% to $19.79) and Hewlett-Packard
(NYSE:HPQ) (+1.55% to $13.07). Both stocks have suffered huge plunges this year thanks to worries over a declining PC market and their weaknesses in the growing mobile sector. At their depressed levels, some investors perhaps found the stocks to be of good value.
Intel, whose partnership with Microsoft
(NASDAQ:MSFT) to challenge Apple
(NASDAQ:AAPL) in the tablet market has had an anemic start thanks to slow shipping speeds, has also announced plans for a three-part bond offering to fund corporate uses and stock buybacks.
(NYSE:WMT) also increased 1.43% to $72.36. Shares of the big-box retailer will go ex-dividend tomorrow, with shareholders as of the market close today eligible for a dividend of $0.40 per share.
(NYSE:T) was among the biggest decliners, falling 0.67% to $33.91. Speaking at the UBS Global Media and Communications Conference, Verizon
(NYSE:VZ) CEO Lowell McAdam said that AT&T, Sprint
(NYSE:S), and T-Mobile
(PINK:DTEGY) were all “playing catch-up” in terms of the breadth and quality of LTE network coverage in the country. AT&T, which recently expanded its LTE network, aims to cover 150 million people by the year’s end. Verizon’s network, meanwhile, covers 250 million.
Dow financials also retreated as Bank of America
(NYSE:BAC) CEO Brian Moynihan warned that the fiscal cliff is already impacting its business.
“We’re actually forming [business] plans in August and September. So even leading up to that, people are becoming more conservative. And I think that’s had an impact on what the growth will be in 2013. And I think we’re in danger if this thing begins to string out in 2013, you may begin to have problems about what 2014 begins to look like,” Moynihan told CNBC, according to MarketWatch
Bank of America dipped 0.15% to $9.81 on the day. JPMorgan
(NYSE:JPM) also fell 0.73% to $40.51 while American Express
(NYSE:AXP) slid 0.45% to $55.74.
No positions in stocks mentioned.
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