Share “Stocks dip with budget deal in doubt at...”

Stocks dip with budget deal in doubt at year's end

By STEVE ROTHWELL Published: December 25, 2012

The stock gained 28 cents, or 1.4 percent, to $19.87.

Other retailers may struggle though this holiday season, as Christmas shoppers rein in their spending, their spirits dampened by concerns about the economy and the aftermath of shootings and storms. Marshal Cohen, chief research analyst at NPD Inc., a market research firm with a network of analysts at shopping centers nationwide, estimates customer traffic over the weekend was in line with the same time a year ago, but that shoppers are spending less.

Shoppers are increasingly worried about the fiscal cliff deadline, adding to the fall's retail woes after Superstorm Sandy's passage up the East Coast.

Consumer spending drives about 70 percent of economic growth, so how confident people are about parting with money is crucial for any economic recovery.

Falling stocks outnumbered gainers by a ratio of five to one in the 30-member Dow, with technology companies leading the decliners. Hewlett-Packard fell 33 cents, or 2.3 percent, to $14.01 and Microsoft Corp. dropped 39 cents, or 1.4 percent, to $27.06.

Stocks may also come under pressure in coming days as investors who have seen their holdings gain this year, decide to sell and book the capital gains tax in 2012 so as to avoid any potential increase in that tax rate next year, according to Kinahan, of TD Ameritrade.

“People who have had a nice year in a particular stock may say `why not take the hit this year,' “ said Kinahan.

Barring a dramatic sell-off in the year's final days of trading, stocks will end the year higher on signs that the U.S. housing market is recovering and the U.S. economy is adding jobs. The Federal Reserve also announced a third-round of its so-called quantitative easing program in September. The program, intended to lower the cost of borrowing and spur lending, helped underpin demand for stocks.

The S&P 500 is 13 percent higher for the year, the Dow is almost 8 percent up and the Nasdaq is nearly 16 percent higher.

Trading volumes were lower than average today before the Christmas holiday Tuesday. The stock market will close at 1 p.m. Monday and will reopen Wednesday.

The yield on the 10-year Treasury note rose 1 basis point to 1.78 percent.

Read the rest of the story on has disabled the comments for this article.


  1. 1
    One third of vegetarians eat meat when they get drunk
  2. 2
    Westboro Baptist Church protests weather science, homosexuality at Norman's National Weather...
  3. 3
    Deadly Shooting Reported on University Campus in Arizona
  4. 4
    FBI director calls lack of data on police shootings ‘ridiculous,’ ‘embarrassing’
  5. 5
    Childcare now costs more than rent. No wonder more women are opting out of the workforce
+ show more


× Trending business Article