Fiscal Cliff Optimism Whipsaws Dow Back to Black; Green Mountain Shares Brew Profits


U.S. stock markets have reversed course sharply, recovering from a morning beat down that saw the Dow Jones Industrial Average post an early triple-digit loss.

Its recovery came after House Speaker John Boehner made optimistic comments that a deal on the so-called 'fiscal cliff' issue can be reached. But the Nasdaq and S&P 500 averages have been slower in clawing their way back to the plus side thus far.

Markets opened lower across the board as investors remain nervous over talks on the so-called 'fiscal cliff' issue. Stocks picked up where they left off Tuesday: sliding south. Fueling fears of another market-drubbing repeat of last year's Congressional failure to deal with the U.S. debt situation in an effective way, were downbeat comments from Majority Senate Leader Harry Reid, who stated that Congress had made little progress in reaching a deal to avoid the automatic end-of-year tax increases and spending cuts.

Adding to the negative sentiment was weaker-than-expected new home sales data. New home sales in October hit an annualized rate of 368,000, which is down from September's revised rate of 369,000, and worse than the rate of 388,000 that had been broadly expected by the consensus.

Asian markets ended lower on Wednesday, spooked by all the speculation and talk about the 'fiscal cliff' negotiations in the United States. In Europe, stocks were initially lower despite reports that the European Commission approved the restructuring plans for four of Spain's weakest banks, clearing the way for them to receive nearly 37 billion euros in bailout cash from the euro-zone's bailout fund. European bourses have rebounded into the black, however, on U.S. equities' whipsaw move back into the black.

In individual stock news of note, shares of Green Mountain Coffee Roasters ( GMCR ) are now up 24% after the company announced bullish quarterly earnings and forward guidance yesterday after the close.

Commodity prices were uniformly lower at mid-day, with oil for December delivery down $1.07 to $86.11 a barrel. December natural gas was down $0.117 to $3.652 per million BTUs.

December gold futures were down $26.10 per ounce to $1718.70. December silver was down $0.454 to $33.62 per ounce. December copper was down $0.0135 to $3.5375.

Here's where the markets stood:

NYSE Composite now up 16 points at 8,166.8.

Dow Jones Industrial Average up 62.30 to 12,940.4.

S&P 500 now up 3.15 to 1,402.4.

Nasdaq Composite Index now up 5.58 to 2,973.


Nikkei 225 Index down 1.22%

Hang Seng Index down 0.62%

Shanghai China Composite Index down 0.89%

FTSE 100 Index up 0.06%

DAX up 0.24%

CAC 40 up 0.37%


NYSE Energy Sector Index (^NYE) down 24.75 (-0.20%) at 12,248.44

NYSE Financial Sector Index (^NYK) down 8.61(-0.18%) to 4,812.89

NYSE Healthcare Sector Index (^NYP) up 19.34 (+0.25%) to 7,767.64


(+) KCG (+14.1%) Shares catch a bid after company confirms that it has received a proposal letter from Getco. As a matter of policy, KCG does not comment on interactions with shareholders or shareholder activities including filings.

(+) GALE (+9.5%) Coverage of the company was initiated at Aegis with a Buy rating and a target price of $6, more than three times the stock's current trading price.

(+) GPOR (+16.4% to near 52 week highs) Shares jump after the company released test results on its Shugert 1-12H well in the Utica Shale.


(-) AMSC (-7%, went near 52 week lows) Shares plunge just above their year bottom following the company's removal from a trading halt, in the wake of an announcement that it has reduced its workforce by approximately 25%, and is consolidating office space to lower operating costs and enhance liquidity.

(-) TFM (-14%) Stock is down after the company reported Q3 earnings of $0.23 per share, below the Capital IQ consensus of $0.26. Revenues were $321.5 mln, versus the analyst estimate of $318.60 mln.

(-) JOSB (-7.6%) Shares under pressure after the company earlier reported Q3 earnings of $0.47 per share, versus the Capital IQ consensus of $0.56. Revenues were $232.9 mln, versus the analyst estimate of $231.83 mln.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: GMCR

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