Stocks fell on Wednesday after an early rally fizzled out.
(INDEXSP:.INX) futures started the day on a positive note after President Obama cut a vacation short to head back to Washington to work on a fiscal cliff deal. However, the party didn't last long, even though the Case-Shiller Home Price Index exceeded expectations and drove financials to outperform on the day.
Ultimately, the market seems to be operating on a combination of profit-taking after a solid year, notably in Apple
(Nasdaq:AAPL), and pessimism regarding a fiscal cliff compromise.
And unusually, the fall in stocks came despite a near-3% rally in crude oil, which was up past the $91 level. Typically, oil and equities have been positively correlated.
In stock news, Marvell Technology
(Nasdaq:MRVL) suffered a huge decline after a US District Court jury ordered it to pay $1.17 billion to Carnegie Mellon University as part of a patent dispute. On the positive side, BlackBerry maker Research In Motion
(Nasdaq:RIMM) rallied sharply as the bullish case for its upcoming BlackBerry 10 operating system is increasingly catching fire with investors.
Tomorrow's Financial Outlook
For Thursday, we're expecting more of the same low-volume, meandering market we've seen this week. However, we will see the jobless claims report and the new home sales report, the latter of which may confirm the strength we saw in today's Case-Shiller numbers.
No positions in stocks mentioned.
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