U.S. equities fell, Thursday, snapping a six-day rise for the S&P 500 as talks to resolve scheduled tax hikes and spending cuts dragged on with little apparent progress, upstaging positive economic news. All 10 industry sectors in the broad market gauge ended the session lower, with the steepest declines among energy, technology and healthcare stocks. Shares of consumer staple companies were the best relative performer, sliding less than 0.3% as a group. Commodities also fell.
Stocks were moderately higher early Thursday following better-than-expected reports on jobs and consumer spending. First-time unemployment insurance claims declined by 29,000 to 343,000 during the week ended Dec. 8, the lowest level since early October. Continuing claims also fell by about 23,000 to 3.198 million for the week ended Nov. 24, the Labor Department reported Thursday. The consensus call for new claims last week was 375,000 with continuing claims seen coming in at 3.2 million.
U.S. Retail Sales
Also Thursday, retail sales rose 0.3% in November, reversing a 0.3% decline the prior month, according to the Commerce Department. Excluding motor vehicles, retail sales were flat for a second consecutive month - in-line with consensus opinion for the period. Experts said the relatively lackluster gain in sales was due to price declines rather than softer demand. Gasoline prices also fell sharply last month and were a major factor in a 4% dip in sales at gasoline stations. Auto sales rose 1.4%.
Boehner Speaks...Again
Still, the uncertain prospects for Washington coming together to keep the U.S. economy from teetering over the so-called fiscal cliff early month continued to weigh on market sentiment, dragging stocks to their lows of the day just before the session close. House Speaker John Boehner helped douse optimism for a quick end to the impasse, late yesterday telling reporters there remains "serious differences" between him and President Barack Obama in the ongoing budget negotiations. President Barack Obama said the negotiations are "still a work in progress."
Commodities also finished lower for a second day. Crude oil for January delivery settled 88 cents lower at $85.87 per barrel. January natural gas slipped 3.5 cents to finish at $3.347 per one million BTU. February gold fell $21.10 to $1697.10 per ounce while March silver slipped $1.41 to $32.38 per ounce. March copper was off six cents at $3.66 per pound.
Here's Where The U.S. Markets Stood At Day's End
- Dow Jones Industrial Average down 74.73 (-0.56%) to 13,170.72
- S&P 500 down 9.03 (-0.63%) to 1,419.45
- Nasdaq Composite down 21.65 (-0.72%) to 2,992.16
- Hang Seng Index down 0.09%
- Shanghai China Composite Index down 0.26%
- FTSE 100 Index up 0.16%
- (+) ONCY, Reports positive top-line results of Phase III testing of its Reolysin drug candidate in combination with carboplatin and paclitaxel in patients with head and neck cancers.
- (+) TELK, Said patients treated with its Ezatiostat drug candidate saw a durable increase in white blood cell levels, leading to a clinical significant reduction in serious infections. The drug also was well tolerated and appears appropriate for longer-term therapy.
- (+) CLWR, Sprint Nextel Corp (S) offers $2.1 billion to buy the rest of the wireless internet provider it already doesn't own. S shares are down 1.2% at $5.60 apiece.
- (+) BBY, Company founder and former CEO Richard Schultze reportedly will make a fully funded buyout offer for the consumer electronics retailer in time for a Friday deadline.
- (-) HRG, Shares tumble after the consumer products conglomerate announces plans for a secondary offering of stock by investment funds affiliated with Philip Falcone and Harbinger Capital Partners.
- (-) RIGL, Receives disappointing top-line results from Phase IIb testing of its fostamatinib drug candidate to treat rheumatoid arthritis. Shares of marketing and development partner AstraZenica (AZN) also fell.
- (-) CORR, Announces plans to sell 18.5 million shares of its common stock in an underwritten public offering, using proceeds for its $225 million purchase of a liquids gathering system in southwest Wyoming from Ultra Petroleum Corp. (UPL). UPL is down 1%.
- (-) ALLT, Downgraded to Hold from Buy at Wunderlich Securities. Price target cut by $6 to $21 a share.