U.S. stocks closed just, scaling back their earlier gains as concerns over the impending fiscal cliff overshadowed economic data released this morning that showed consumer sentiment touched a five-year high.
U.S. Consumer Sentiment
After opening in negative territory, stocks were lifted following the 10 a.m. ET release of the Thomson Reuters/University of Michigan's preliminary index of consumer sentiment for November. The index rose to an 84.9 reading from 82.6 last month, the fourth consecutive monthly gain. Economists surveyed by Bloomberg had been expecting an 82.9 reading, with estimates ranging from 74.7 to 86. A final measure for the month is due Nov. 27.
Separate data found wholesale inventories rose in September by the most in nine months as wholesalers sharply boosted stocks of farm goods and oil, the latest sign the economy grew more than initially estimated in the third quarter. Total wholesale inventories gained 1.1% to $494.2 billion, beating even the highest estimate in a Reuters poll of analysts. Following the report, banking group Barclays raised its estimate for Q3 gross domestic product growth to 3.2% from its prior 2.8% forecast.
President Barack Obama addressed the fiscal cliff this afternoon, in his first public statement since making his victory speech early Wednesday. In his statement, Obama urged the House of Representatives to act swiftly in passing an extension of tax cuts for families making less than $250,000 per year.
Commodities ended the session mostly higher. Crude-oil futures rose 1.2% to settle at $86.07 a barrel on the New York Mercantile Exchange. Gold rose 0.3% to $1,730.90 an ounce. In total, gold added 3% this week.
Here's Where The Markets Stood At Day's End:
- Dow Jones Industrial Average up 4.07 (+0.03%) to 12,815.39
- S&P 500 up 2.34 (+0.17%) to 1,379.85
- Nasdaq Composite Index up 9.29 (+0.32%) to 2,904.87
- Nikkei 225 Index down 0.90%
- Hang Seng Index down 0.85%
- Shanghai China Composite Index down 0.12%
- FTSE 100 Index down 0.11%
- (+) ZIP, car sharing service beats expectations with a $0.10 a share Q3 profit, up from a $0.02 gain last year and breezing past the consensus call among analysts forecasting net earnings of $0.01 a share.
- (+) ISIS, Cowen upgrades stock to Outperform from Neutral, Zacks reiterates Outperform rating and $9.75 a share price target, citing the FDA's expected approval early next year of company's Kynamro cholesterol treatment.
- (+) LGF, Q2 profit climbs to $0.53 a share, reversing year-ago net loss and beating analyst expectations, helped by video sales of "The Hunger Games." Sales nearly double to $707 million, topping estimates by $83.6 million.
- (+) CRAY, Narrows Q3 net loss to $0.14 a share, beating consensus opinion by $0.28. Buys advanced supercomputing firm Appro International for $25 million in cash.
- (-) GRPN, Falls to 52-Week Low on Q3 Revenue Shortfall
- (-) STRA, Guides Q4 EPS below analyst expectations, forecasting earnings a penny either side of $1.44 a share. The Street is at $1.59. Also suspends quarterly dividend.
- (-) DIS, Warns rising sports costs and declines in home video sales declines will hurt financial results in media giant's fiscal Q1 from October to December.