Reuters - Video

EDITION: U.S. | U.K. | IN

Top News

Stocks hostage to fiscal cliff fear

Thursday, November 15, 2012 - 01:56

Nov. 15 - Summary of business headlines: Dow, Nasdaq slip to five-month low on fiscal cliff concerns; Wal-Mart sales disappoint, but Target beats; Superstorm Sandy damages business activity in the Mid-Atlantic and jobless claims spike; Global markets turbulent as Mideast violence escalates and euro returns to recession. Conway G. Gittens reports.

▲ Hide Transcript

View Transcript

Stocks are down three days in a row with Wall Street fixated on the fiscal cliff debate in Washington. The Dow and Nasdaq sit at their lowest close in five months. But there was more to worry about than possible mandatory spending cuts and tax hikes. Global revenues were lighter than expected at Wal-Mart as it lowers prices to try and spur demand. The retailer also says an internal bribery probe is spreading beyond Mexico to Brazil, China, and India. Shares of the world's largest retailer - down 3.6 percent on the day. But shares of discount rival Target rallied after beating quarterly forecasts. The latest economic figures - giving investors little reason to go shopping as the impact of Superstorm Sandy shows up in the data. Business activity in the Mid-Atlantic states unexpectedly shrank in November, according to the Philadelphia Federal Reserve. And the Labor Department says jobless claims surged last week. Escalating tensions in the Middle East weighed on investors' minds in the U.S. and Israel. There was tit-for-tat rocket fire between the Israelis and Palestinians. Rafael Gozlan is chief economist at IBI in Tel Aviv. SOUNDBITE: RAFAEL GOZLAN, CHIEF ECONOMIST, IBI (ENGLISH) SAYING: "What actually happened today was a normal reaction to the tension in Gaza. The stock exchange opened quite lower about minus two percent in the morning. The Israeli shekel weaken by more than one percent from yesterday's low and bond market actually suffered something like minus 0.7 in the long term bond. But along the day there was a substantial improvement." Sticking with global markets, European investors digested news the euro zone slipped into recession for a second time. But the downside was limited as France and Germany, the bloc's largest economies, narrowly averted contraction.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Stocks hostage to fiscal cliff fear

Thursday, November 15, 2012 - 01:56

Editors' Picks »

Moving Pictures »

The world in a city The world in a city

1:56pm GMT - (1:30)

Real-life superheroes Real-life superheroes

Tue, 28 Oct, 2014 - (1:44)

Dance of the northern lights Dance of the northern lights

Mon, 20 Oct, 2014 - (1:08)

Images of September Images of September

Thu, 02 Oct, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, 05 Sep, 2014 - (2:05)

Burning Together Burning Together

Mon, 01 Sep, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, 22 Aug, 2014 - (3:12)

Images of August Images of August

Fri, 29 Aug, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, 11 Aug, 2014 - (2:27)

Burned memories Burned memories

Fri, 08 Aug, 2014 - (3:02)

Oddly Enough »

Ancient baby mammoth on display in Moscow Ancient baby mammoth on display in Moscow

Wed, 29 Oct, 2014 - (1:14)

Snow leopard arrives at Mexico zoo Snow leopard arrives at Mexico zoo

Tue, 28 Oct, 2014 - (0:59)

Horse rescued from swimming pool Horse rescued from swimming pool

Tue, 28 Oct, 2014 - (0:30)

Surfing in a different sort of costume Surfing in a different sort of costume

Mon, 27 Oct, 2014 - (1:10)

Skateboards get rock star makeovers Skateboards get rock star makeovers

Thu, 23 Oct, 2014 - (1:28)

Giant rubber duck on show in Shanghai Giant rubber duck on show in Shanghai

Thu, 23 Oct, 2014 - (1:06)

Black bear cub goes Sunday shopping Black bear cub goes Sunday shopping

Thu, 23 Oct, 2014 - (0:27)

Christie's opens new Shanghai office Christie's opens new Shanghai office

Wed, 22 Oct, 2014 - (1:13)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, 19 Feb, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, 10 Jan, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, 29 Aug, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, 29 Aug, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, 05 Aug, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, 17 Dec, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sun, 09 Dec, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Mon, 10 Dec, 2012 - (10:39)