U.S. stocks fell for a second day following another big drop for Apple (AAPL) amid reports of a tepid, first-day response in China for its latest generation iPhones. Little apparent progress by political leaders to settle on new tax rates and spending levels before a Dec. 31 deadline also weighed on trader sentiment, overshadowing positive economic news here and abroad. Most industry groups in the S&P 500 finished with losses, led by shares of technology companies.
U.S. CPI
Consumer prices fell in November for the first time in six months. The Consumer Price Index dropped 0.3% last month with a big decline in gasoline prices offsetting increases in other areas, according to the Labor Department. Economists polled by Bloomberg had expected consumer prices to fall 0.2%.
A separate report showed manufacturing is growing at its swiftest pace in eight months. Industrial production expanded 1.1% last month after a revised 0.7% fall in October, the Federal Reserve said on Friday. Analysts polled by Reuters had expected output to gain by 0.3% last month, after October was previously reported as a 0.4% drop.
Meanwhile, manufacturing data out of China was encouraging for its key trading partners, including the U.S., and for the prospects for global growth. The preliminary December reading was 50.9 for a purchasing managers' index released by HSBC Holdings Plc and Markit Economics, beating estimates.
Commodities
The positive manufacturing data helped support commodity prices Friday. Crude oil for January delivery settled 84 cents higher at $86.73 per barrel. January natural gas finished down 3.3 cents to $3.314 per 1 million BTU. February gold fell 20 cents to $1696.90 per ounce while March silver fell 7 cents to $32.31 per ounce. March copper rose 2 cents to $3.68 per pound.
Here's Where The U.S. Markets Stood At Day's End
- Dow Jones Industrial Average down 35.71 (-0.27%) to 13,135.01
- S&P 500 down 5.87 (-0.41%) to 1,413.58
- Nasdaq Composite Index down 20.83 (-0.70%) to 2,971.33
- Hang Seng Index up 0.71%
- Shanghai China Composite Index up 4.32%
- FTSE 100 Index down 0.13%
- (+) FUBC, Authorizes stock buyback of up to 1.7 million shares - equal to 5% of its currently outstanding shares.
- (+) ALU, Inks $2.1 billion debt financing deal with Credit Suisse (CS) and Goldman Sachs (GS), allowing the communications equipment company to move forward with its restructuring plans.
- (+) NIHD, Board Chairman Steven Shinder named interim CEO, replacing Steven Dussek, who stepped down to pursue other opportunities.
- (+) ALXA, European health regulators recommend approval of the company's Adasuve drug candidate to control agitation in adults with schizophrenia and bipolar disorders.
- (-) SLB, Expects earnings per share to fall by 5 to 7 cents in the fourth quarter because of contractual delays in Europe, Africa and the Commonwealth of Independent States and weaker- than-expected onshore U.S. and Western Canadian drilling.
- (-) PAY, Q4 earnings of $0.76 a share were in-line with forecasts but revenue of $489 million comes up $6.2 million short. Sees Q1 EPS of $0.70 to $0.73, trailing the Street view by at least $0.02. Guides FY13 earnings, revenue in-line with analysts.
- (-) ZQK, Q4 earnings of $0.07 a share miss by $0.02. Sales rise 2.5% year over year to $558.97, also trailing the analyst consensus by $7.18 million.
- (-) BBY, Company extends deadline for former CEO and company founder Dick Schultze to make a bid for the consumer electronics retailer.