Bob Pisani is off; this post was written by CNBC producer Robert Hum.
The Best Buy Effect
Best Buy is now down 15 percent midday following its gloomy earnings report this morning. In fact, that decline is giving the stock its worst day since Aug. 8, 2002, when it plunged nearly 37 percent.
Best Buy’s disappointing report is also having a ripple effect on some stocks today.
Electronics retailer RadioShack is 3.5 percent weaker, while many of the LCD glass and TV manufacturers including Corning , LG Display and Sony are all down 1 percent or more on a day that the markets are rallying.
Meanwhile, telecom stocks are one of the leading sectors today, with Verizon and Sprint showing some strength. Remember, the one positive out of Best Buy’s report was the growth in its mobile segment (cellphones and smartphones), which could be positive for some of wireless carriers.
The Markets Melt Up
Stocks are continuing to inch up, making higher highs on the day. After failing to do so yesterday, the Dow is seeking to close above 11,444 today. If it does, it’ll become the last of the major indices to hit a new multi-year high.
Meanwhile, the S&P 500 continues its own march up. With today’s gain, the index is now up 6 days in a row (up 1.9 percent during the current period) – it’s longest winning streak since July when the markets bounced off their lows of the year. Throw in a couple of strong days at the beginning of this month as well, and the S&P now finds itself up 5.5 percent in December, which would be its best month since September and its best December since 1999.
With this month’s rally, since the July lows: Russell 2000 up 29 percent, Dow Transports up 29 percent, Nasdaq Composite up 26 percent, S&P 500 up 22 percent, Dow Industrials up 19 percent.
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