S&P, Nasdaq drop as consumer sentiment offsets jobs
By Gabriel Debenedetti | December 8, 2012 4:49 AM EST
The S&P 500 and the Nasdaq slipped on Friday after consumer sentiment unexpectedly dipped, dampening early enthusiasm from a better-than-expected employment report.
The Thomson Reuters/University of Michigan's preliminary consumer sentiment index plunged to 74.5 in early December, the lowest level since August.
Wall Street opened higher after U.S. Labor Department data showed non-farm employment increased more than expected, with 146,000 jobs added in November.
"The gain was sharper than expected, particularly in light of the hurricane, so certainly that was a pleasant surprise. We'll take it," said Gordon Charlop, managing director at Rosenblatt Securities in New York.
The equity market has regained most of the ground it lost following President Barack Obama's re-election as markets turned their focus to the coming "fiscal cliff." Market response to the macroeconomic data remained muted as negotiations continued to command investor attention.
"We will just have to see overall how much of an effect one number can have on what is really a market that is pointing towards Washington and fiscal cliff negotiations," Charlop said.
U.S. House Speaker John Boehner said that talks this week with President Barack Obama produced no progress, and he renewed his demand that the president provide a new offer to avert the series of tax increases and spending cuts that are likely to hurt economic demand in 2013.
Still, the market's resilience - the S&P 500 is just 4.1 percent below the 2012 intraday high of 1,474.51 reached in mid-September - suggests investors still see a deal coming to fruition before long.
"I think the market has priced in an expectation that something may get done, and if it doesn't, it would be done shortly after January first, so I don't see any worries in the market," said Jeff Meyerson, head of trading for Sunrise Securities in New York.
The Dow Jones industrial average <.DJI> rose 42.66 points, or 0.33 percent, to 13,116.70. The Standard & Poor's 500 Index <.SPX> dipped 0.12 of a point, or 0.01 percent, to 1,413.82. The Nasdaq Composite Index <.IXIC> lost 16.38 points, or 0.55 percent, to 2,972.89.
Amarin Corp shares slid 19.2 percent to $9.66 after the biopharmaceutical company raised $100 million in financing to help it launch its heart drug, Vascepa, but disappointed investors, who had hoped for a sale or partnership.
In contrast, shares of Netflix Inc
After falling nearly 10 percent so far this week, Apple Inc shares were down 2.5 percent at $533.59 on Friday.
(Additional reporting by Chuck Mikolajczak; Editing by Bernadette Baum and Jan Paschal)
Most Popular Slideshows
- G20 Summit Awkward Moments: Putin Yawns, Mystery Bubbles Appear, F18 Drama Ensues
- Real Life ‘Frozen’: Snow Overwhelms The US, Kills 7; More To Come (Pictures)
- Angelina Jolie, Brad Pitt in Sydney for ‘Unbroken’ Red Carpet Premiere [PHOTOS]
- ‘The Walking Dead’ Season 5, Episode 8 Spoilers: Daryl Dixon Is Set To Burn The Place Down in ‘Coda’
Join the Conversation
- Walmart Early Price Matching Special Event On Nov. 21, 2014 Matches Its Competitors' Black Friday 2014 Prices And Includes Exclusive Deals For Samsung LED HDTVs And iPad Air 2 [WATCH VIDEO]
- US Plane Flying Over Russian Skies Spotted; Vladimir Putin Ready For 'Practical Cooperation' With US
- 6 Big Reasons iPhone 6 Plus is Must-Have Black Friday, Christmas 2014 Buy
- Nexus 6 Release Date And Price Under AT&T, T-Mobile And Sprint Listed
- NATO To Russia: 'Pull Back Your Troops'
- Alleged 'Microsoft Lumia 1030' Front Panel Leaked With Capacitive Buttons; 'Xbox One' Owners To Get Free Goodies On Anniversary
- Cold War 2: Russia, China And North Korea’s Blacklisted Company Fortify Alliance -- Reports