Stocks Sink on Pessimism Over Fiscal Cliff

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Fiscal-cliff talks have once again grabbed the market's attention and pulled stocks lower today. Ben Bernanke's comments yesterday that the fiscal cliff was already impacting business wasn't a surprise, but it did confirm the sentiment about the cliff. And comments from House Speaker John Boehner today gave investors reason to think a deal won't be reached by New Year. Near the end of trading, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) has fallen 0.71%, while the S&P 500 (SNPINDEX: ^GSPC  ) is down 0.81%.

The biggest losers aren't the usual suspects like bank stocks or construction-related stocks, which usually fall on bad economic news. They're actually some of the most diversified companies on the market.

3M (NYSE: MMM  ) has fallen 0.9%, Disney (NYSE: DIS  ) is down 1.4%, and Procter & Gamble (NYSE: PG  ) is down more than 1%. These stocks are heavily tied to general GDP growth, not just sector-specific growth, so the fact that they're leading the Dow lower shows just how investors are feeling today.

And there seems to be no safe haven for the time being. Gold is down 1.3% to less than $1,700 an ounce. Gold has been the commodity of choice for investors fearing economic downturn in the U.S., and we may be seeing the shiny metal losing its luster with investors. Oil has fallen 0.9% today, helping to drive energy stocks lower.

The fiscal cliff will continue to dominate day-to-day news in the coming weeks, as there is little earnings news due out until the New Year. That could lead to more up-and-down days like we saw yesterday and today, so prepare yourself for a rollercoaster ride.

Be greedy when the market is fearful
If you're looking for some long-term investing ideas, let me invite you to read the Fool's brand-new special report: "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so just click here and get your copy today.


Read/Post Comments (0) | Recommend This Article (0)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2153188, ~/Articles/ArticleHandler.aspx, 10/27/2016 10:39:54 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 4:02 PM
DIS $94.02 Up +0.53 +0.57%
Walt Disney CAPS Rating: *****
MMM $165.76 Down -0.75 -0.45%
3M CAPS Rating: *****
PG $86.58 Down -0.82 -0.94%
Procter and Gamble CAPS Rating: ****