Wednesday’s Worries Spook Stock Market

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Better-than-expected earnings by Cisco Systems failed to reduce stock market worries concerning the European crisis, the Middle East and the fiscal cliff.

A disappointing report on retail sales and concern about an Israeli air strike in Gaza reduced investor enthusiasm on Wednesday morning as worries outweighed good news.  Although a better-than-expected earnings report from SPX Chart Nov 14 300x227 Wednesday’s Worries Spook Stock MarketCisco Systems (NASDAQ:CSCO) caused the stock to gain 7.8 percent in pre-market trading, the news was overshadowed by disappointing European economic reports and a Eurozone-wide protest against austerity.  Anxiety about the fiscal cliff continued to underlie the other issues of the day that continue worrying the stock market.  Chart courtesy of Stockcharts.com

As of 2:40 EST, the Dow Jones Industrial Average sank 109 points (0.86 percent) to 12,646.  The S&P 500 Index fell 0.76 percent to 1,364 – staying below its 50-day moving average of 1,431 and its 200-day moving average of 1,381 (NYSEARCA:SPY).  As the S&P 500 remains below its 200-day moving average after a triple top (see green bar on chart) there is a serious risk that the index could make a further decline.  The Nasdaq Composite declined 0.65 percent to 2,865 (NASDAQ:QQQ).  The Russell 2000 Index took a 1.11 percent nosedive to 780 (NYSEARCA:IWM).

The “Dollar Bull” Index ETF (NYSEARCA:UUP) declined by 2 cents (0.09 percent) to 22.19 as of 1:29 EST.

As of 1:20 EST, the S&P 500 Volatility Index – or VIX – advanced 1.86 percent to 16.96.  However, the VIX Short-Term Futures ETN made an 0.86 percent decline to 34.55 (NYSEARCA:VXX).

The major European stock market indices made significant declines on Wednesday as a Eurozone-wide protest against austerity accompanied more bad news about the Greek economy.  The Euro STOXX 50 Index finished Wednesday’s trading session with a 0.81 percent decline to 2,472 (NYSEARCA:FEZ).  The Euro STOXX 50 Index remained below its 50-day moving average of 2,516.  The FTSE 100 Index dropped 1.11 percent to 5,722 (NYSEARCA:EWU).  The German DAX Index sank 0.94 percent to 7,101 (NYSEARCA:EWG).  France’s CAC 40 Index fell 0.89 percent to 3,400 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index declined 0.27 percent to 7,673 (NYSEARCA:EWP).  Italy’s FTSE MIB Index declined 0.52 percent to 15,252 (NYSEARCA:EWI).  Euro Stocks Down into Close as Greek Fears Weigh

As of 1:42 EST, the euro advanced 0.35 percent against the dollar, trading at $1.2749 (NYSEARCA:FXE).

On London’s ICE Futures Europe Exchange, January futures for Brent crude oil advanced by $1.07 (1.00 percent) to $108.41/bbl. (NYSEARCA:BNO, NYSEARCA:USO).

December Gold futures advanced by $5.60 (0.32 percent) to $1,730.40 per ounce (NYSEARCA:GLD).  Time to Buy Junior Gold Mining ETFs?

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