Dow Closes Below 13,000 For First Time Since August 2 (S, BA)
PUBLISHED ON: Nov 7, 2012
Stocks traded sharply lower following the re-election of President Obama in the US. The Dow Jones, S&P 500 and Nasdaq all ended in the red with many investors refocusing their worries on the looming fiscal cliff and economic troubles in Europe. The EU issued several negative forecasts on Wednesday about Europe's shrinking GDP and growing unemployment rates. These fears also drove down the euro, which declined against the US dollar. An additional report made today was on consumer credit in the US, which saw a jump higher than forecasted for the month of September. Boeing (BA) announced major restructuring and future job cuts and Kraft (KFT) beat expectations for net profit due to increased advertising and productivity.Bank of America (BAC), JPMorgan (JPM) and several other large banks saw significant losses today.
Word on the Street
- Investors' attention returns to looming economic crises now that Obama has another four years.
- WellPoint Inc. (WLP) sees higher than expected Q3 earnings but does not raise forecast.
- US consumer credit was up for the month of September, led by borrowing for education and automobiles.
- Hospital stocks such as HCA Holdings (HCA) soar on Wednesday after the President's re-election.
- Sprint (S) and US Cellular make a $480 million deal that will boost coverage.
- The US dollar hits a two-month high while pressure on the euro continues due to economic worries.
- Boeing Co. (BA) announces restructuring that will cut about 30% of management jobs and close facilities.
- McGraw-Hill (MHP) initiates talks with Apollo Global (APO) for sale of educational unit.
- What does President Obama's re-election mean for investors?
- Brian Halligan, founder of HubSpot, embraces a new philosophy when it comes to marketing.