fairn.png
Thursday August 11th, 2022 5:42AM

Stocks tumble as 'fiscal cliff' deadline nears

By The Associated Press
NEW YORK (AP) -- Stocks fell for a fifth day on concern that Washington lawmakers will fail to reach a budget deal before a self-imposed year-end deadline.

The five-day losing streak for the Dow Jones industrial average was the longest since July.

The Dow dropped 158.20 points to 12,938.11 points, with losses accelerating in the last 20 minutes of trading as reports circulated that President Barack Obama would not be making a new budget proposal in a meeting with congressional leaders.

The Standard & Poor 500 index fell 15.67 points to 1,402.43, its longest losing streak in three months, and the Nasdaq dropped 25.59 points to 2,960.31.

"The reality, late in the day, is that a deal is just not going to get done," said Ryan Detrick, a senior technical strategist at Schaeffer Investment Research. "We could be greeted by a big sell-off at the start of January."

President Barack Obama returned from a Christmas break in Hawaii to meet with congressional leaders at the White House to try thrash out the terms of a deal that would prevent across-the-board tax increases for millions of Americans as well as simultaneous government spending cuts beginning Jan. 1. Those measures, if implemented, could push the economy back into recession, economists say.

Stocks closed lower Thursday but erased most of an early loss after Republicans said they would reconvene the House of Representatives Sunday in hopes of piecing together a last-minute budget deal.

Traders have been focusing on Washington, and the budget negotiations, since the Nov. 6 presidential election returned a divided government to power.

"I can't wait till this is done, so we can start talking about markets again and not just about politics," said Doug Cote, chief market strategist at ING Investment Management. Cote doesn't expect lawmakers will manage to reach a deal before the deadline and says that when people assess the extent of tax increases on the way, "the market is going reel."

Cote also expects slowing earnings growth to hit stocks.

Despite the fiscal gridlock in Washington, major stock indexes are holding on to gains for the year. The Dow is up 5.9 percent, the S&P 500 index is 11.5 percent higher and the Nasdaq is up 13.6 percent.

Stocks rose in 2012 on optimism that a housing market recovery, coupled with an improving job market, will support economic growth. The Federal Reserve has also extended its bond purchasing program, which is intended to lower borrowing costs and encourage spending and investment.

Stocks declined despite reports that suggested the outlook for the economy is improving.

A measure of Americans who signed contracts to buy homes increased last month to its highest level in two and a half years, the latest sign of improvement in the once-battered housing market. The National Association of Realtors said Friday that its seasonally adjusted pending home sales index rose to its highest since April 2010.

The Institute of Supply Management's Chicago-area purchasing managers index for December came in at 51.6, beating estimates for a gain to 51.

Bond prices rose as investors moved money into defensive investments. The yield on the benchmark rise 10-year Treasury note, which falls when bond prices rise, dropped to 1.70 percent from 1.75 percent late Thursday.

Among stocks making moves:

Hewlett-Packard fell 36 cents, or 2.6 percent, to $13.68 after the computer and printer maker said the Department of Justice is investigating H-P's business software unit Autonomy. H-P bought Autonomy for $10 billion in 2011 and has accused the company's former management of fudging its accounting before the acquisition. H-P has lost almost half its market value this year, making it the biggest decliner among the 30 stocks in the Dow average.

Barnes and Noble rose 62 cents, or 4.3 percent, to $14.97 after the U.K. publishing and education company Pearson said it is making an $89.5 million investment in the company's Nook Media division, as the two companies look to make a bigger digital push into the education sector.
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Doctors: Blood clot located in Clinton's head
Secretary of State Hillary Rodham Clinton developed a blood clot in her head but did not suffer a stroke or neurological damage, her doctors said Monday. They say they are confident that she will make a full recovery.
3:55PM ( 8 years ago )
Illinois Sen. Kirk to return a year after stroke
Nearly a year after a stroke left him barely able to move the left side of his body, U.S. Sen. Mark Kirk is expected to climb the 45 steps to the Senate's front door this week - a walk that's significant not just for Illinois' junior senator, but also for medical researchers and hundreds of thousands of stroke patients.
3:54PM ( 8 years ago )
U.S. News
Ga. ethics legislation could end free tickets
General Assembly approval next year of a proposed ethics reform measure could endanger an important fall tradition for Georgia lawmakers - free football tickets.
6:26PM ( 8 years ago )
Abortion restrictions, tax changes loom in Ga.
Tax breaks for manufacturers and higher unemployment taxes for employers take effect with the new year in Georgia, but it remains to be seen whether the state's newest abortion restrictions will be enforced.
6:23PM ( 8 years ago )
Business News
Couch names administrative team
Ahead of his scheduled swearing in Friday, Hall County Sheriff-elect Gerald Couch named his top administrative team Monday.
6:28PM ( 8 years ago )
Tech beats Southern California in Sun Bowl
Tevin Washington threw a touchdown pass and ran for another score to help Georgia Tech beat Southern California 21-7 on Monday in the Sun Bowl.
5:54PM ( 8 years ago )
Hall Co. officials launch health-based initiative for employees
Hall County officials believe healthy county employees will be of greater service to the county. With that in mind, they have created a health-based fitness initiative to provide free fitness training for county workers.
5:46PM ( 8 years ago )
Local/State News
Maine same-sex couples marry in first hours of law
After waiting years and seeing marriage rights nearly awarded and then retracted, gay couples in Maine's largest city didn't have to wait a moment longer than necessary to wed, with licenses issued at the stroke of midnight Friday as a new state law went into effect.
8:02AM ( 8 years ago )
Fresh fighting in C. African Republic; US leaves
Renewed fighting between government forces and rebels seeking to overthrow the president broke out Friday in Central African Republic's third largest city, a military official said, hours after the U.S. ambassador and his team were evacuated from the capital.
3:18PM ( 8 years ago )
White House meeting a last stab at a fiscal deal
A planned Friday afternoon meeting among congressional leaders and the president - their first since Nov. 16 - stands as a make-or-break moment for negotiations to avoid across-the-board first of the year tax increases and deep spending cuts - the fiscal cliff.
8:06AM ( 8 years ago )
Politics
YMCA Learning Center celebrates one year anniversary
When the YMCA Learning Center of Gainesville opened on Feb. 24, 2020, staff members had no idea that a global pandemic would come the following month.
2:45PM ( 2 hours ago )
Investigators comb for clues in Friday night plane crash
Federal investigators remained on the scene Sunday following a single-engine plane crash Friday night near the Gainesville airport that killed three people.
By AccessWDUN staff
11:10AM ( 5 hours ago )
Flowery Branch man to be sentenced for dealing drugs from prison
A Flowery Branch man pleaded guilty last week in federal court in Athens to conspiring to distribute methamphetamine from his prison cell.
By AccessWDUN staff
10:13AM ( 6 hours ago )
Voting bills flood Georgia legislature as GOP seeks limits
Republicans in Georgia’s state legislature have introduced a flood of bills aimed at rolling back voting access after record turnout led to recent Democratic wins in the state
8:30AM ( 8 hours ago )
Humane Society of Northeast Georgia hiring medical positions
Leadership with the Humane Society of Northeast Georgia is looking to fill the positions of Medical Director and Associate Veterinarian.
6:00AM ( 10 hours ago )