No Signs of "Santa Claus Rally" as Markets Off on Cliff Worries, Disappointing Retail Numbers
All of the major markets saw a decline on Wednesday after no progress was made on Fiscal Cliff talks and retailers began reporting holiday sales figures that may end up being the worst since the financial crisis. However, non-traditional retailers have been showing signs of growth as Christmas Day online sales jumped 22.4% over last year. The US Dollar rose to a 2-year high against the Japanese Yen, fueled by the new PM of Japan pushing banks to lower interest rates to help their economy. US home prices beat forecasts for the month of October, increasing by 4.3% YOY according to the S&P/Case-Shiller index of property values. There was no sign of a so-called "Santa Claus Rally", which is the surge in stock prices that often occurs in the week between Christmas and New Year's.
Word on the Street
- Shares of battered tech stock Research in Motion (RIMM) gained over 11% as the stock rebounded after a post-earnings crash.
- A jury ordered Marvell Technology Group (MRVL) to pay $1.17 billion in damages for patent infringement to Carnegie Mellon University.
- Netflix (NFLX) laid the blame on Amazon (AMZN) for outages to its streaming services on Christmas Eve.
- There was speculation on Wall Street that Twitter may be lining up for an IPO in 2013.
- The price of oil rose 2.7% Wednesday on the positive housing data and hopes that a budget deal will be reached in Washington.
- Starbucks (SBUX) announced that it would urge workers near Washington to write "Come Together" on its cups, hoping to help push lawmakers to reach a Fiscal Cliff deal.
- Who's going to be winning in the mobile market in 2013?
Published on Dec 21, 2012By InvestorGuide Staff