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Market Wrap: Obama's Welcome: Dow Drops 300+ Points; Solars Face New Tariffs; Boehner Open to Talks; AT&T to Spend Big

November 7, 2012 6:30 PM EST Send to a Friend
Market wrap-up for November 7th

End of the Day: S&P 500 down 33.9 to 1,394.53; Dow Jones down 313.0 to 12,932.73; Nasdaq down 74.6 to 2,937.29

The following is a brief summary of events moving markets today:
  • Well, Barack Obama is back for four more: Whether you cast your vote for the incumbent or not, it was a close one until the end. Obama won the swing state of Ohio, the most controversial state in the election.

    Consequently, markets fell pretty hard today. As noted above, the Dow dropped over 300 points, while the others also fell well over 2 percent.

    More than just Obama, Greece is back at it with citizens unwilling to make any more sacrifices as well as chatter that Germany is not longer the oil to the euro-zone's water...free from getting mixed up in all the debt issues. Comments from Draghi Wednesday morning highlighted the difficulty, with him saying, "Germany has so far been largely insulated from some of the difficulties elsewhere in the euro area. The latest data suggest that these developments are now starting to affect the German economy."

    For more, click here.

  • This is sure to solve trade issues: Solars got hit today as well, as the International Trade Commission (ITC) voted to impose new tariffs on Chinese-made solar panels. The ITC voted 6-0 that U.S. panel makers were being injured by illegal dumping from Chinese competitors.

    Tariffs on Chinese solar makers may range from 24 percent to 36 percent.

  • Four more years to sort it out: U.S. House Speaker John Boehner said that Republicans would be willing to accept new revenue under the "right conditions." Discussions between the two parties would be held to h avoid spending cuts as well as tax hikes. Obama has called for raising taxes on those making more than $200,000 per year and couples that make more than $250,000, while Boehner maintains that Repulicans are opposed to tax hikes.

    Boehner said revenue growth could come from economic expansion -- "economic scoring" as he put it -- which is a position that Democrats aren't willing to take.

    Chatter comes as there is now less than two months until terms of the Budget Control Act of 2011 go into effect. The so-called "fiscal cliff" will increase payroll taxes, implement taxes related to Obamacare, cancel certain tax breaks for businesses, and more.

  • Well, if it's burning a hole in your pocket..: AT&T (NYSE: T) announced plans to invest $14 billion over the next three years to significantly expand and enhance its wireless and wireline IP broadband networks to support growing customer demand for high-speed Internet access and new mobile, app and cloud services.

    In addition, the wireless giant raised its dividend a modest 2.3 percent to 45 cents per share. Annual yield on the payout is about 5.2 percent.

  • Sandy leads to scraps: Auto makers might still fell a pinch from Superstorm Sandy. According to recent data, as many as 100,000 autos from the likes of Honda (NYSE: HMC), Toyota (NYSE: TM), Chrysler, and others will need to be scrapped due to damage from the storm.

    Sandy -- the largest Atlantic storm on record -- closed U.S. markets for trading two days last week.
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