After Market: Bah, Humbug! Still No Sign of the Usual Christmas Rally

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There's still plenty of time for a certain Jolly Old Elf to visit Wall Street and deliver the Santa Claus rally that traditionally leads up to Christmas, but so far this month, it's been mostly coal in the stockings of investors. That's raising questions about whether were at the start of a long-predicted market correction.

Lump of Coal
Getty Images
The Dow Jones industrial average (^DJI) fell another 104 points. The blue chips have now lost ground in 8 of the last 10 sessions, and are down more than 350 points from the record high set two weeks ago. The Standard & Poor's 500 index (^GPSC) dropped 6 points, and the Nasdaq composite (^IXIC) lost 5.

The S&P 500 announced changes to its closely watched index -- most significantly, adding Facebook (FB). That boosted shares of the social network giant by 5 percent, as mutual funds that track the index will be forced to buy it. Mohawk Industrials (MHK) is also being added. It added less than 1 percent. But JDS Uniphase (JDSU) and Teradyne (TER), both of which are being dropped from the S&P 500, each lost 3 percent.

Elsewhere, Lululemon (LULU) tumbled nearly 12 percent -- not over worries about too-sheer yoga pants, but an earnings outlook for the current quarter that's a bit skimpy.

Cisco (CSCO) lost 2 percent after trimming its long-term growth forecast. The tech giant says it is "extremely challenged" in emerging markets, including China and India.

Ciena (CIEN), which also provides networking equipment, fell 7 percent. Its net badly missed expectations and revenue guidance was a bit weak.

And AmTrust Financial (AFSI) tumbled 12 percent after an analyst raised questions about the insurance company's financial reports.

On the plus side, a pair of IPOs had successful debuts. Hilton Worldwide (HLT) rose 7.5 percent from its initial pricing level. And Aramark (ARMK), the food service company at stadiums and big cafeterias, gained 13 percent.

Hovnanian (HOV) gained 6 percent. The homebuilder's net topped expectations and it said both deliveries and orders are rising.

And some biotechs rebounded from recent selling. Sarepta (SRPT) jumped 19 percent.
What to Watch Friday:
  • The Labor Department reports producer prices for November at 8:30 a.m. Eastern time.
-Produced by Drew Trachtenberg.


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22 Comments

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pdbliz

HAS ANYONE SEEN OBAMAS NOSE LATELY.???????

December 13 2013 at 8:15 AM Report abuse -1 rate up rate down Reply
jerrym930

The Stock Market will be fine until the FED stops the QE. As soon as the FED announces the scaling back of QE, everyone needs to get out of the market. I keep hearing the left talk about income inequality (including the President), but yet they never say anything about how the FED is the main reason so many rich people have gotten so much richer. All they talk about is making the rich pay higher taxes.

December 13 2013 at 5:06 AM Report abuse +1 rate up rate down Reply
Dallas Snell Sr.

They are saving for their Obamacare fine.

December 12 2013 at 10:21 PM Report abuse -1 rate up rate down Reply
1 reply to Dallas Snell Sr.'s comment
jerrym930

Or they are saving to pay the higher premiums and deductibles on the Obamacare insurance they are forced to buy.

December 13 2013 at 4:55 AM Report abuse rate up rate down Reply
Iselin007

I am wondering who is going to buy the Huff post since it's losing people rather quickly?

December 12 2013 at 9:55 PM Report abuse -2 rate up rate down Reply
Iselin007

The technology changes have been too disruptive to the world economy right along with the trade deals. People are buying homes they will not be able to keep because the jobs aren't stable and neither is much else anymore.

December 12 2013 at 9:45 PM Report abuse -3 rate up rate down Reply
pdbliz

EVAN IS BACK,,,THE POSITIVES ARE GOING TO NEGITIVES.!!!!

December 12 2013 at 9:30 PM Report abuse -4 rate up rate down Reply
Iselin007

No the economy is not recovering. The debt is still there. The government ought to lower the retirement age 6 years for the baby boomer who been shoved aside in order to perpetuate this fraud for the last 3 decades.

December 12 2013 at 9:04 PM Report abuse -3 rate up rate down Reply
1 reply to Iselin007's comment
betty_brock

So true. Liberals just don't want to admit that we are in deep financial trouble.

December 12 2013 at 9:11 PM Report abuse -6 rate up rate down Reply
1 reply to betty_brock's comment
pdbliz

And,,today,,,I can not be how the Republican leader talked about the TEA PARTY....... I may be finished with Republicans also.!!!!!
Both parties in Washington are there for the money only.....Get to be Millionaires on our dime,,then act like they care about you...
But,,the Democrates are worse.....THE DEMOCRATES ARE DESTROYING FAMLIES AND DESTROYING THE BLACK FAMILY MORE........

December 12 2013 at 9:26 PM Report abuse -7 rate up rate down
betty_brock

Evan can do sign language. Thumbs down for us, thumbs up for himself.

December 12 2013 at 8:19 PM Report abuse -8 rate up rate down Reply
pdbliz

Christmas to some was in 2006 Election.!!!! And,,they have been getting gifts all year..........But,,all good things will end,,and,,believe me,,,they will end....
But,,to the 51% who voted for CHANGE,,,,,,,they will soon get coal for Christmas....
HOW IS HOPE AND CHANGE,,,,,AND,,,OBAMA CARE WORKING FOR YOU....
2014,,,AND 2016,,,,,,,,I want to see the faces of the 51% ........DUGH.......I thought it was FREE.!!!!! HA!!!!!! get your pocket book out people,,!!!!!

December 12 2013 at 7:41 PM Report abuse -7 rate up rate down Reply
2 replies to pdbliz's comment
betty_brock

Lower income people will get a subsidy. We taxpayers will fund it. Merry Christmas.

December 12 2013 at 7:47 PM Report abuse -7 rate up rate down Reply
2 replies to betty_brock's comment
pdbliz

Very true,,,,,,that is the way it was written....And,,I learned today,,,,all the young,,that do not buy into the insurance,,,,,,the tax payer will make up the difference that is not collected......
ObamaCare was not meant for HEALTH CARE,,,,,, It is to destroy the inter working of America and the working family.!!!!
So,,the 51% will pay also.........HOW IS THIS FOR HOPE AND CHANGE.!!!!!
How does Obama sign in the hand language for this.!!!!!

December 12 2013 at 8:07 PM Report abuse -6 rate up rate down
Iselin007

There wouldnt be lower income if the wages had kept up. Ignoring the plight of the middle class and poor will leave ramifications for years to come.

December 12 2013 at 9:15 PM Report abuse -2 rate up rate down
bamashades

yep, they thought the freebies would never end

December 12 2013 at 7:47 PM Report abuse -7 rate up rate down Reply
jwmgrand

Nobody is going to get in the game at these levels ( oversold ) their will have to be massive haircuts for all the daily trading stars to try to re-ignite this wet tinder ..... not to mention when the fed pulls the plug .... everyone is going to be saying LOOK , the King has no clothes and NO justified earnings to go along with it ....and we all know what that means ........sell ..........!

December 12 2013 at 6:29 PM Report abuse -1 rate up rate down Reply