US stocks took a deep dive in early Friday trading after House Speaker John Boehner failed to gather enough votes amongst Republicans to pass his "Plan B" fiscal cliff proposal to lift tax rates for those with annual incomes of more than $1 million.
Boehner held a press conference earlier to address the pressing issue, stating that he did not rule out working with Democrats to reach a deal before the fiscal cliff deadline of December 31. Bleeding at the stock market eased off a little as a result.
"I think there is a middle ground here still and fortunately the middle ground is probably going to be with bipartisan support," Art Hogan of Lazard Capital Markets told CNBC
The Dow Jones Industrial Average
(INDEXDJX:.DJI) was down 1.25% to 13,144.82 points as of 12:21 p.m. EST.
Dow financials led the tumble after the Republican vote fizzled out, with Bank of America
(NYSE:BAC) sliding 2.37% to $11.25 and JPMorgan
(NYSE:JPM) dropping 1.59% to $43.82. Other major financials, including Citigroup
(NYSE:C) (-2.46%), Morgan Stanley
(NYSE:MS) (-1.92%), Wells Fargo
(NYSE:WFC) (-1.69%) and Goldman Sachs
(NYSE:GS) (-1.43%), were down on the day as well. The bellwether Financial Select Sector SPDR ETF
(XLF), which tracks all financial stocks in the S&P 500, is down 1.45% to $16.35.
(NYSE:CAT) fell 2.22% to $87.51. A Bloomberg report today highlighted that Caterpillar and other construction-equipment makers now have a problem of excess inventory in China, where sales are slowing. Caterpillar is confident that the slowdown in China will be short-lived, however.
(NYSE:DIS) also retreated 2.12% to $49.85.
All 30 Dow stocks were in the red, but those showing relative strength on the day were Wal-Mart
(NYSE:WMT) (-0.62%), American Express
(NYSE:AXP) (-0.27%), and Johnson & Johnson
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.