MENAFN - ProactiveInvestors - Australia
Why the Dow Jones losses accelerated in afternoon trade
U.S. markets were lower Wednesday after the White House rejected the Republican budget proposal, dubbed "Plan B", to avert the fiscal cliff, as the deadline fast approaches. The fall in stocks gained pace after the Republican budget plan was rejected. The ASX will look to open softer - with the SPI current a few points weaker.
(MENAFN - ProactiveInvestors - Australia) U.S. stocks were lower overnight, with the fall gaining pace after the Republican budget plan was rejected.
By the close the Dow Jones had lost 99 points to 13,252, while the NASDAQ fell ten points to 3044.
White House communications director Dan Pfeiffer said in a statement that President Barack Obama would veto the plan offered by House Speaker John Boehner, which includes raising taxes on incomes of 1 million or above.
Boehner originally wanted tax increases on no one, but the threshold is still much higher than President Obama's 400,000 threshold, which was already a concession.
"The proposal from the Ohio Republican would give millionaires a tax break of 50,000, while eliminating tax cuts that 25 million students and families struggling to make ends meet depend on," Pfeiffer said.
A vote is expected on Thursday.
On the economic front, the only data point was housing starts for November. Housing starts last month fell to 861,000 from a downwardly revised 888,000 in October. Analysts expected less of a drop, to 865,000, largely due to the impact from Hurricane Sandy.
Building permits, meanwhile, rose 3.6% in November to 899,000.
In corporate news, Knight Capital Group (NYSE:KCG) shares rose as it agreed to be bought by rival electronics trading firm GETCO in a 1.4 billion cash-and-stock deal, with the two companies to be merged under a new publicly traded holding company.
Shares of General Motors (NYSE:GM) were up over 6% after the auto maker said it would buy 200 million shares of its stock from the U.S. Treasury, part of the government's plan to sell all of its stake in the company in the next 12 to 15 months.
Meanwhile, according to a Bloomberg report, healthcare company Pfizer (NYSE:PFE) will cut about a fifth of its 3,000-member sales force for primary care pharmaceuticals as part of a continued cost-cutting strategy after losing its patent on its cholesterol drug, Lipitor. Shares in the company were down 0.9% late Wednesday.
On the earnings front, economic bellwether FedEx (NYSE:FDX) stood by its full-year earnings outlook, while Hurricane Sandy hurt profits in the second quarter. FedEx also said it expects to show a third-quarter profit of 1.25 to 1.45 a share, down from a year ago and compared to a 1.45 estimate, but affirmed its full-year adjusted earnings target of 6.20 to 6.60 a share.
General Mills (NYSE:GIS) raised its profit outlook for the year, and quarterly profit came to 541.6 million, or 82 cents a share, up from 444.8 million, or 67 cents, earned in the same period during fiscal 2012. Sales improved to 4.88 billion from the prior year's 4.62 billion.
Navistar International Corp. (NYSE:NAV) swung to a wider-than-expected fiscal fourth-quarter loss due to several large charges, while sales declined. The vehicle and engine manufacturer recently agreed to name to its board three directors nominated by activist investor Carl Icahn.
Late Tuesday, Oracle (NASDAQ:ORCL) posted better-than-expected results for its second fiscal quarter, and issued an upbeat forecast for its hardware business next quarter, sending shares higher on Wednesday.
In bio tech news, shares in Oncothyreon (NASDAQ:ONTY) plummeted over 54% Wednesday after the company said that a phase 3 trial of its lung cancer drug did not meet the main goal of improving overall survival in patients.
MENA News Headlines
|Mar 11 2014||Kershaw warms up in Dodgers loss ,Kora|
|(MENAFN - Kora) Kershaw lasted five innings as his Dodgers suffered a 3-2 loss to the San Francisco Giants at Camelback Ranch on Sunday.
He will start on the opening day of the season when the ...|
|Mar 11 2014||Doha International Airport traffic increases 18 percent in January ,MENAFN|
|(MENAFN) Passengers in Doha International Airport reached a record of 2,191,148 passengers in January, 18 percent higher than the record registered in the same month 2013, according to Arabian ...|
|Mar 11 2014||Carter double continues Kings' winning streak ,Kora|
|(MENAFN - Kora) Jeff Carter netted a double and provided an assist as the Kings clinched their seventh consecutive win with a 4-2 victory over the Edmonton Oilers.
Oilers goaltender Ben Scrivens, ...|
|Mar 11 2014||Williams hit with three-game ban ,Kora|
|(MENAFN - Kora) The New Zealand second rower was charged with a Grade 2 shoulder charge for a hit on George Burgess late in the game, the second time in the contest he had been whistled for the ...|
|Mar 11 2014||Mourinho expects to lose Torres for 'couple of weeks' ,Kora|
|(MENAFN - Kora) The Spain international was set to start in Chelsea's Premier League clash with Tottenham on Saturday, but was replaced by Samuel Eto'o after injuring himself in the warm-up.
|Mar 11 2014||Mel speculation is 'crazy', says Foster ,Kora|
|(MENAFN - Kora) Mel has yet to win since taking charge of the Premier League club in January, and West Brom have dropped from 14th in the table to 17th with only goal difference keeping them out of ...|
|Mar 11 2014||Saudi retail stores lose USD160 m on hiring women ,MENAFN|
|(MENAFN) Jeddah Chamber of Commerce and Industry (JCCI) said that Saudi Arabia's employment of women in retail stores has cost businesses over USD160 million in lost sales, according to Arabian ...|
|Mar 11 2014||De Guzman confident ahead of West Brom clash ,Kora|
|(MENAFN - Kora) With both sides embroiled in the fight to stay up this season, the Dutch midfielder knows that claiming three points would go a long way to preserving Swansea's top-flight ...|
|Mar 11 2014||Liverpool striving for perfection, says Allen ,Kora|
|(MENAFN - Kora)
Liverpool were in irresistible form in the opening 20 minutes of that match, scoring four goals as Brendan Rodgers' men sent a clear signal of their title-winning intent.
|Mar 11 2014||Strootman World Cup hopes in serious doubt ,Kora|
|(MENAFN - Kora) The Dutchman was carried from the field after 13 minutes of Sunday's 1-0 defeat to Napoli, having previously attempted to play through the pain, and reports surfaced on Monday that ...|
|Mar 11 2014||Getafe confirm Contra as new coach ,Kora|
|(MENAFN - Kora) Garcia lost his job after a run of 12 La Liga matches without a win left the side precariously placed just one point above the bottom three.
A matter of hours after announcing his ...|
|Mar 11 2014||Silva happy to remain in Paris ,Kora|
|(MENAFN - Kora) The Brazilian's impressive displays have caught the eye of many this season as PSG romp towards the Ligue 1 title, as well as securing a place in the Coup de la Ligue final and ...|
|Mar 11 2014||Gosling admits FA charge ,Kora|
|(MENAFN - Kora) Under Rule E8(b) of the FA's governance guidelines, professional players are prohibited to use, or pass on, information related to football that is not publicly available and could be ...|
|Mar 11 2014||UEFA Champions League Preview: Barcelona v Manchester City ,Kora|
|(MENAFN - Kora) After seeing Martin Demichelis sent off shortly before the hour mark, City slumped to a 2-0 defeat in the first leg of their last-16 tie with Barca at the Etihad Stadium last month. ...|
|Mar 11 2014||Blundell: Button the complete package ,Kora|
|(MENAFN - Kora) In the lead-up to Sunday's opening race of the 2014 F1 season, Blundell, who raced for McLaren in 1995, labelled Button as the 'complete package'.
The 34-year-old Button won the ...|
|Mar 11 2014||Kroos undecided on future ,Kora|
|(MENAFN - Kora)
Speculation is rife in both the German and British media that Kroos is on the shopping list of Manchester United manager David Moyes.
The 24-year-old midfielder has played 22 of ...|
|Mar 11 2014||Hoeness admits tax fraud ,Kora|
|(MENAFN - Kora) The 62-year-old former Germany international attended the first day of his high-profile trial in Munich on Monday, charged with defrauding the authorities of ‚¬3.5m, and surprised the ...|
|Mar 11 2014||Martinez hopes for Deulofeu stay ,Kora|
|(MENAFN - Kora) Deulofeu signed with Everton on a season-long loan deal at the start of the season and Martinez is keen to keep the 19-year-old at Goodison Park for the 2014/15 Premier League ...|
|Mar 11 2014||Qatar's GDP to boost 6 percent in 2014 ,MENAFN|
|(MENAFN) The International Monetary Fund (IMF) said that Qatar's gross domestic product is predicted to grow by 6 percent this year, according to Arabian Business.
IMF said in a report that public ...|
|Mar 11 2014||Russian Forces Seize Ukraine's Main Military Hospital in Simferopol ,Qatar News Agency|
|(MENAFN - Qatar News Agency) Russian forces have taken over Ukraine's main military hospital in Simferopol today and a military transport base in Bakhchysari as the Kremlin's military operation ...|