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Overnight Markets: Wall Street falls amid fiscal cliff talks

Retailers declined on concerns about heavy discounts at the start of the U.S. holiday shopping season.

 
Overnight Markets: Wall Street falls amid fiscal cliff talks

Wall Street slipped on Monday, following last week gains, as lawmakers prepared to discuss the so-called fiscal cliff and euro-area finance ministers debate Greek aid.

The Dow Jones industrial average fell 42 points, or 0.33%, to 12,967. The S&P 500 dropped three points, or 0.2%, to 1,406. The Nasdaq Composite gained 10 points, or 0.33%, to 2,977.

Markets rallied last week on the political willingness to negotiate the prevention of the looming fiscal cliff, but the White House threw cold water on the proposal by limiting tax deductions and loopholes, instead of allowing tax rates to rise for the richest Americans.

In eurozone, finance ministers and the International Monetary Fund made their third attempt in as many weeks to agree on releasing emergency aid for Greece. Policymakers said a write-down of Greek debt is off the table for now.

Retailers fell on concerns about heavy discounts at the start of the U.S. holiday shopping season. Target, one of the largest retailers by market value, fell 2.6%. Macy’s Inc. slumped 4.5%.

Bucking the retail trend, shares of eBay closed at their highest in almost eight years, rising 4.9%, as the online marketplace notched strong sales on "Cyber Monday." Amazon gained 1.6%.

Shares of Knight Capital Group Inc jumped 13.3% following reports that rivals might be preparing to bid for part or all of the trading firm.

Technology shares also rebounded with Apple adding 3.2% after the company asked a federal court to add six more products to its patent infringement lawsuit against Samsung Electronics.

UnitedHealth Group Inc. slumped 0.7% after providing a profit forecast below estimates. DreamWorks Animation SKG lost 5.2% as “Rise of the Guardians” opened in fourth place in cinemas over the Thanksgiving weekend.

In Asia, equities gained on Tuesday after European finance ministers slashed borrowing costs for Greece and gave the indebted nation more time to pay back rescue loans.

The MSCI Asia Pacific Index advanced 0.6% to 124 as of 10:47 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average gained 0.6%, Australia’s S&P/ASX 200 Index advanced 0.8% and South Korea’s Kospi jumped 1.1%.

Singapore’s Straits Times and Taiwan’s Taiex both rose 0.3%. China’s Shanghai Composite slid 0.2% and Hong Kong’s Hang Seng increased 0.6%.

4 comments so far. Why not have your say?

joe stalin

Nov 27, 2012 at 07:51

The problem with reporting on event driven markets and trying to justify gyerations is that the reasons found are invariable out of date by the time the story hits the wires. Yesterday was a correction to last weeks rise as last week's rise was a correction to the pior week 's decline ahaed of option expiration. All this is just noise and hopefully serious investors do not pay any attention to it but look beyond all this irrelevant clutter.

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Jn

Nov 27, 2012 at 09:08

American politicians and their fiscal cliff. Euro politicians and their endless debates. As Joe said, all clutter and boring.

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Geoff Downs

Nov 27, 2012 at 09:39

Serious investors have to look beyond nothing, They simply have to thank Mr Bernanke.

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joe stalin

Nov 27, 2012 at 11:50

Institutional lack of conviction ans preoccupation with performance figures has seen markets move sideways for much of the last 12 months. By staying within the herd it is assumed that finger pointing can be avoided particularly as the returns on cash are negative and have been for the lastfour years or more now.Agains this back drop it is easy to manipulate markets and this is done through futures particularly DOW and S&P add to this HFT in ridiculously small quantities of shares at any one time and you have the market we have today and have had probabaly since the end of 2009. Conditions are improvig albeit slowly and there will be no Grexit nor is the Fiscal Cliff anything other than a red hearing. The "professional" market has become lazy and risk averse and cynically benefitting from the impact of QE. But the economy will recover and rates will go up and then there will be nowhere to hide for the mediocre One thing seems abaundantly clear to me - night mare scenarios are pumped by all yet somehow they don't seem to come to fruition. maybe when I find that turkeys are voting for Christmas I will start paying a bit more attention to the financial media.

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