Winning Streak Disappears on Wall Street – November 12, 2009

Energy Shares Lead Selloff

Stocks closed sharply lower Thursday, ending a six-day rally as energy shares dragged on the market. Four stocks fell for every one that rose on the New York Stock Exchange. The government’s report of a jump in petroleum supplies stirred worries that falling energy demand was a sign of weakness in the economy. The news put the brakes on an early tech advance that took place after Intel Corp. (INTC) said it would pay $1.25 billion to Advanced Micro Devices Inc. (AMD) to settle legal disputes. The slide in the energy sector also overshadowed some additional positive news about the economy. New claims for unemployment unexpectedly dropped last week to the lowest level since early January. In other news, the Treasury Department announced that the federal deficit hit $176.4 billion in October. Treasurys were mixed after light demand at a government auction of 30-year notes. The yield on the benchmark 10-year Treasury note fell to 3.47 percent from 3.48 percent. Crude oil fell $2.34 to settle at $76.94 per barrel on the New York Mercantile Exchange.

Word on the Street

Feuding chip rivals Intel Corp. (INTC) and Advanced Micro Devices Inc. (AMD) agreed to settle all of their outstanding legal complaints. Intel has agreed to fork over $1.25 billion, which it can absorb pretty easily, to settle the antitrust lawsuit filed against them. Just because both companies have put down their boxing gloves, doesn’t mean Intel is free and clear. The company may face government probes for the way it did business in the chip market.

Why Intel needs AMD

Video — Intel Taps Melamed

The Federal Reserve announced new rules today that prohibit financial institutions from charging large overdraft fees on ATM and debit card transactions unless the customer has agreed to pay extra charges for exceeding account balances. The new rule will take effect July 1, 2010.

Disney Co. (DIS) is moving around some of its chest pieces. Chief Financial Officer Tom Staggs and parks chairman Jay Rasulo, will swap jobs at the end of 2009. According to people close to the situation, this move was done to bolster the experience of both executives.

Disney Parks Releases Wait Time App – Now your experience at Disney’s theme parks may be a little less hectic.

Fewer people may be filing unemployment claims, but it’s definitely not because more companies are hiring. A number of economists believe that claims would have to fall by at least 100k to indicate the economy could soon produce even a slight gain in jobs.

United Technologies Corp. (UTX) agreed to acquire General Electric Co.’s (GE) electronic security systems and fire safety operations for $1.82 billion.

Borrowers are still not keen on variable rate loans according to Freddie Mac (FRE). The company reported that more people turned to fixed-rate loans for refinancing in the third quarter amid low mortgage rates.

Have you refinanced yet?

We keep hearing that the housing market is improving because demand for homes is increasing. According to a recent report, demand isn’t as strong as previously perceived.

Those falling prices at Wal-Mart (WMT) took a small bite out of its sales, but the company still managed to swing to a better third-quarter. Profits were up thanks to cost-cutting, even as falling prices for food and electronics shrank sales receipts.

Video — Wal-Mart & the Consumer Wealth Gap

Other Juicy Tidbits

A New Crisis Ahead? Five Things To Look For

The Case Against Retirement — Financial and demographic developments point toward Americans working into their golden years. And that’s a good thing

What have we learned about the recent Bear Stearns acquittals?

How Steve Jobs changed music — Those ubiquitous white earbuds only hint at how profoundly (AAPL) has revamped the way we hear, buy and make music.

10 Ways Credit Card Companies Are Still Screwing You — Credit card companies are already finding new ways to get rich at your expense.

Consumer Corner

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10 Travel Traps To Avoid

7 Myths About Windows 7 — A fine new operating system arrives amid a cloud of confusion