Wall Street Off for Fourth Day; GOP to Reconvene on Sunday Dec. 30
Wall Street dipped slightly on Thursday due to rising distress over the looming fiscal cliff. The House plans to reconvene on Sunday and investors hope to hear of a budget agreement. The growing pessimism over a cliff deal and a recent drop in consumer confidence shielded other news of positive economic recovery. New home sales rose at the fastest pace in over two and half years last month to a seasonally adjusted annual rate of 377,000. This news along with reports that mortgage rates have dipped to close to record lows shows that the recent housing recovery is sustainable. First-time unemployment claims dropped by 12,000 and reached the lowest four-week average since March 2008.Toyota Motor Corp. (TM) announced their proposed settlement amount of $1.1 billion for their 2009-2010 acceleration case. BCD Semiconductor Manufacturing Ltd. (BCDS) jumped 86% after Diodes Inc. (DIOD) said they would buy the company for $151 million. The tech industry recovered late on Thursday as Apple (AAPL) closed 0.4% higher for the day.
Word on the Street
- Housing market shows modest recovery as mortgage interest rates finish out 2012 near record lows.
- US consumer confidence drops for December due to fears of tax hikes and spending cuts.
- Toyota (TM) reaches proposed settlement of up to $1.1 billion for class-action lawsuit.
- Energy stocks drop on Thursday while Chevron Corp. (CVX) gains after finding new gas sites.
- Questcor Pharmaceuticals, Inc. (QCOR) declines almost 8% on chatter of coverage reduction.
- Oil slips to $90.87 a barrel as hopes to reach a budget agreement fall.
- Even though the Nasdaq Compositve (COMP) finish in the red, tech stocks pare back early losses.
Published on Dec 27, 2012By InvestorGuide Staff