Apple down, stocks add to losses as ‘fiscal cliff’ looms; extremely weak U.S. holiday shopping reported

“Stocks added to their gains to trade near session lows in thin trading Wednesday, dragged by retailers, as ongoing worries over the looming ‘fiscal cliff’ overshadowed a better-than-expected Case-Shiller home price index,” JeeYeon Park reports for CNBC. “‘There’s just no certainty and people don’t know where to step,’ said Stephen Guilfoyle of Meridian Equity Partners. ‘We’re kind of in a quandary here—the market didn’t catch at 1,422 like it was supposed to and the next catch point is 1,415 on the S&P. There’s not a lot of volume and you have a lot of traders with question marks on their heads right now.'”

“The Dow Jones Industrial Average dipped into negative territory for the third-straight session… The S&P 500 and the Nasdaq also erased their gains to turn lower. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, gained near 19,” Park reports. “Obama will return to Washington early on Thursday, according to the White House, to deal with the deadlocked talks between Democrats and Republicans on what to do with $600 billion in tax increases and automatic spending cuts, due to kick in on Jan. 1.”

“The worries over the fiscal cliff and an extremely weak report on the holiday shopping season put major retail stocks including Macy’s, Wal-Mart and Target under pressure,” Park reports. “Sales in the two months before Christmas rose just 0.7 compared to last year, the slowest rate of growth since 2008, according to the MasterCard Advisors Spending Pulse. Analysts had been expecting growth of 3 to 4 percent… Meanwhile, Apple weighed on the tech sector and the Nasdaq 100 index, slipping nearly 1 percent.”

Read more in the full article here.


        1. Going over the cliff will be painful for a while, but will work out for the best in the end.

          I will be glad to pay more taxes to help balance the budget if everyone else does, too. And this is the only way that we will get substantial cuts through Congress, including meaningful cuts in the DoD budget. Painful medicine…but medicine that neither major party was willing to make voluntarily.

  1. Look, we are in a worldwide Depression/Recession scenario and Apple Corporation has shined ins spite of that. But folks only have so much money and many have none. May all have a prosperous New Year.

    At least many folks have made a wise decision regarding Apple products and know the value of quality over quantity.

  2. Duh. Even while I fire my older, more-experienced (and higher-paid) employees and reduce benefits to the rest and prepare to decrease spending to prepare for the new economy, I still plan to make some Apple purchases next year. Oh, and guns. Need to buy more guns ASAP to prepare for the revolution so I can fight off the government soldiers who are going to be sent to take my guns away. Fortunately, as we fall off the fiscal cliff there won’t be enough money for gun-stealing soldiers, and our chances of winning the revolution will be greater. Or something. Wait, whose side am I supposed to be on again?

    1. I just increased my position in Smith & Wesson (SWHC). Even if an “assault weapons” ban goes through, hand gun sales will skyrocket. If no ban goes through, stock will go up. Buy now.

  3. For all those that say they will gladly pay more taxes-GOOD FOR YOU! if you feel you do not pay enough, nothing is keeping you innpaying more tot he IRS voluntarily. Some of us are already paying more than there fair share and this is not including the other hidden taxes aka “fees” brought on by state and local governments. Plus if I am being generous with my money, a non-profit or charitable organization would be my first choice instead if the government.

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