Like yesterday, markets seemed to move on every fiscal cliff headline. Unlike yesterday, stocks tanked.First the scoreboard:
Dow: 12,938, -158.2, -1.2 per cent
S&P 500: 1,402, -15.6, -1.1 per cent
NASDAQ: 2,960, -25.6, -0.8 per cent
And now the top stories:
- Stocks fell right out of the gates this morning, but then got a lift just before 11:00 AM ET. Around that time, a headline crossed that President Obama would offer a “scaled-back” fiscal cliff package at today’s 3:00 PM ET meeting with congressional leaders at the White House. Bloomberg reported that Obama’s offer would be to extend Bush-era tax rates on incomes below $250,000, as well as “delay or replace” some spending cuts set to kick in. It would also prevent the expansion of the alternative-minimum tax.
- However, stocks grinded back lower and ended the day near the lows of the day. And at the end of the day, the sell-off accelerated after CNBC’s Eamon Javers reported that President Obama would not make an offer today. Javers cited a source familiar with the meeting.
- The meeting, which also includes Treasury Secretary Tim Geithner, is ongoing. Click Here For Our LIVE Coverage Of Today’s Meeting >
- In economic news, the December reading of the Chicago Purchasing Managers’ Index climbed to 51.6 from 50.4 in November. The number, which also beat economists’ expectations, was driven by a jump in new orders.
- In a worrisome sign, however, the employment index of the Chicago PMI collapsed. “That may look worse than it really is, however,” he writes. “The drop in employment reflects the prior weakness in new orders in November and to a lesser degree owing to the fiscal cliff which breeds well understood uncertainty.”
- Don’t Miss: 44 Companies That Get Slammed If The Government Slashes Spending >
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