Stocks Slide as Oil Drops Below $76
Stocks opened lower Tuesday, after soaring to new 2009 highs on Monday, as a report showed the economy grew less than expected in the third quarter and oil pulled back.
The Dow was down more than 50 points in early trading, led by Alcoa , Boeing and JPMorgan .
Oil dropped below $76 a barrel, while gold was trading above $1,168a troy ounce.
GDP was revised to show the economy grew at a 2.8 percent rate in the third quarter, lower than the initial reading of 3.5 percent.
But the Conference Board's gauge of consumer confidence rose to 49.5 in November from 48.7 in October. And home prices improved for a fifth straight monthin September, Case-Shiller reported.
The Dow has ended the holiday-shortened Thanksgiving week higher about 64 percent of the time over the past 59 years — and more recently, it's gained in six of the past eight Thanksgiving weeks.
Ironically, its best Thanksgiving week performance since 1950 took place last year, while the financial crisis was accelerating: the Dow gained almost 10 percent that week — but only partially making up for the carnage of the prior three weeks.
In earnings news, Hewlett-Packardhit its earnings target, as expected, per its preannouncement a few weeks ago.
Medtronic , Hormel and Heinz beat earnings expectations. Barnes & Noble and Borders delivered weak reports and cautioned that the holiday season will be challenging.
Investors will also watch Qualcomm, as the European Commission closes a four-year antitrust case against the chipset maker without levying a fine.
Britain's Lloyds Banking Group is in the news for a record $22.4 billion share sale, which was priced at a 60 percent discount to the stock's prior closing price. The sale is one part of a recapitalization plan that Lloyds is instituting to avoid taking part in the UK government's asset insurance program.
At 2 pm New York time, the Federal Reserve releases the minutes of the most recent FOMC meeting.
The Treasury continues a record week of note auctions by selling $42 billion in 5-year notes. As usual, the results will be available shortly after 1 pm New York time.
- Peter Schacknow contributed to this report.
TUESDAY: GDP (2nd look); Conference Board consumer confidence; Sheila Bair press briefing; Five-year note auction; Fed minutes; Earnings from American Eagle, Barnes & Noble, Dollar Tree, Hormel, Medtronic and TiVo
WEDNESDAY: Weekly mortgage apps; weekly jobless claims; durable goods; personal income; Reuters/U of Mich consumer sentiment; new-home sales; weekly crude inventories; 7-year note auction; Earnings from Deere, Tiffany
THURSDAY: Thanksgiving—all US financial markets closed
FRIDAY: Black Friday—US markets open but NYSE closes early
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