Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  US Stocks Week Ended December 7, 2012
Posted Under: Weekly Market Commentary
Supporting Image for Blog Post

 
Equities were mixed for the week, with the Dow Jones Industrial Average up 1% and the technology heavy NASDAQ falling almost the same percentage. A 9% drop for the week in Apple Inc. led the selloff in tech shares as Microsoft inked a smart phone deal with China's largest telecommunications provider and investors locked in capital gains at a potential lower rate. The market remained focused on the looming fiscal cliff as House Speaker John Boehner and President Barack Obama try to hammer out a deal. Oracle Corp. and Coach Inc. became two of the latest companies to announce a special cash dividend before the end of the year to avoid a potential new tax rate of 43.4% for top earners, versus the current 15% rate. According to Markit Securities Finance, special cash dividends are at an all-time high with 159 companies announcing payments in the fourth quarter to date. In employment news, the jobless rate fell two-tenths of a percentage point to 7.7%, the lowest rate since December 2008. November nonfarm payrolls rose by a better-than-expected 146,000 versus the 80,000 predicted by economists. In other stocks news, Big Lots Inc. lost ground after it was reported that the CEO is being investigated for selling $10 million in shares right before the shares plunged 24%. Investors reacted negatively to Freeport-McMoRan Copper & Gold Inc. buying both McMoRan Exploration Co. and Plains Explorations & Production Company. Freeport-McMoRan Copper & Gold Inc. paid a hefty premium for both firms and is expanding back into exploration and production, an area they had previously divested. Looking ahead, markets will remain volatile in the near term due to uncertainty over a comprehensive bipartisan plan to stave off the fiscal cliff. For investors with a longer time horizon, uncertainty should create a nice entry point for many individual equities, as they are generally driven by their cash-flows and earnings over time.
Posted on Thursday, December 13, 2012 @ 9:54 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Inflationary Pressure Has Abated In Some Key Countries
Being Paid for Taking Risk
Nerves Have Settled Some In Europe
Institutional And Retail Investors Still Do Not See Eye-To-Eye On the Markets
US Economy and Credit Markets Week Ended November 30, 2012
US Stocks Week Ended November 30, 2012
A Welcome Sight
Gaining Exposure To China’s Economy Without Investing In Its Stocks
US Economy and Credit Markets Week Ended November 23, 2012
US Stocks Week Ended November 23, 2012
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2023 All rights reserved.