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Stocks tumble as 'fiscal cliff' deadline nears

Published on NewsOK Modified: December 28, 2012 at 3:36 pm •  Published: December 28, 2012
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Stocks rose in 2012 on optimism that a housing market recovery, coupled with an improving job market, will support economic growth. The Federal Reserve has also extended its bond purchasing program, which is intended to lower borrowing costs and encourage spending and investment.

Stocks declined despite reports that suggested the outlook for the economy is improving.

A measure of Americans who signed contracts to buy homes increased last month to its highest level in two and a half years, the latest sign of improvement in the once-battered housing market. The National Association of Realtors said Friday that its seasonally adjusted pending home sales index rose to its highest since April 2010.

The Institute of Supply Management's Chicago-area purchasing managers index for December came in at 51.6, beating estimates for a gain to 51.

Bond prices rose as investors moved money into defensive investments. The yield on the benchmark rise 10-year Treasury note, which falls when bond prices rise, dropped to 1.70 percent from 1.75 percent late Thursday.

Among stocks making moves:

Hewlett-Packard fell 36 cents, or 2.6 percent, to $13.68 after the computer and printer maker said the Department of Justice is investigating H-P's business software unit Autonomy. H-P bought Autonomy for $10 billion in 2011 and has accused the company's former management of fudging its accounting before the acquisition. H-P has lost almost half its market value this year, making it the biggest decliner among the 30 stocks in the Dow average.

Barnes and Noble rose 62 cents, or 4.3 percent, to $14.97 after the U.K. publishing and education company Pearson said it is making an $89.5 million investment in the company's Nook Media division, as the two companies look to make a bigger digital push into the education sector.