This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Crushed as Wall Street Girds for Fiscal Cliff Battle

President Barack Obama spoke at the White House Wednesday and said he was willing to work with House Republicans and Senate Democrats to avoid the $607 billion in automatic tax increases and spending cuts, or "the fiscal cliff," due to hit on Jan. 1.

But he also reiterated a pledge to not preserve Bush-era tax cuts for the wealthiest Americans, sticking by a goal to pull in $1.6 trillion in new revenue through tax hikes on households generating incomes of more than $250,000.

"There is a budget package to be shaped, and I'm confident that parties ... can make that happen. But what I'm not going to do is extend Bush tax cuts for the wealthiest 2% that we can't afford, and according to economists will have the least impact on our economy," Obama said in Wednesday's press conference.

"The two parties have very different visions of what a deal should look like. Failure to reach a compromise in the coming weeks could lead to a recession and bear market for stocks in early 2013," said Frank Fantozzi, president at Planned Financial Services.

The Census Bureau said Wednesday retail sales fell 0.3% in October, more than the 0.2% decline expected by economists, after increasing by an upwardly revised 1.3% in September.

Excluding motor vehicles, retail sales were unchanged; economists had forecast an increase of 0.2%.

"October's U.S. retail sales figures suggest that consumption has lost a bit of momentum ahead of the crucial holiday shopping season," said Paul Dales, senior U.S. economist at Capital Economics. "Even after excluding sales of gasoline, autos and building materials, underlying sales fell by 0.1% month over month ... compares with an average rise of 0.6% month over month over the previous three months."

"It is hard to know how much of this is due to Hurricane Sandy (the Census Bureau said it doesn't know either) and how much may be due to a more general easing in spending growth linked to concerns over the fiscal cliff," Dales continued. "November's sales will be crucial. A bounce-back would point to a temporary Sandy-induced softening, while another soft month would suggest that the threat of a sharp fall in after-tax incomes in the new year is worrying households."

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
SBUX $51.56 0.45%
AAPL $132.78 1.10%
FB $80.87 0.48%
GOOG $541.26 -0.23%
TSLA $247.16 0.63%

Markets

DOW 18,271.89 -13.85 -0.08%
S&P 500 2,129.22 -1.60 -0.08%
NASDAQ 5,095.2660 +4.4720 0.09%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs