The Dow Now: All 30 Dow Stocks in the Red After Boehner's 'Plan B' Failure

By Sterling Wong  DEC 21, 2012 12:29 PM

Wal-Mart and American Express displayed relative strength.


MINYANVILLE ORIGINAL 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.
Caterpillar (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.
Disney (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 (NYSE:JNJ) (-0.51%).

Twitter: @sterlingwong
No positions in stocks mentioned.

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