Market Wrap: Politicians Have Split Deficit Views; Mergers! Get Yer Mergers!; H-P Net Drops 91%; New Love for Old Homes

Market wrap-up for November 21st

End of the Day: Dow Jones down 248.85 to 11,547.31; Nasdaq down 49 to 2,523.14; S&P 500 down 22.67 to 1,192.98

The following is a brief summary of events moving markets today:

• Breaking news! Politicians can't agree!: U.S. markets closed lower Monday, after a U.S. congressional committee is said to have failed an effort to meet expectations for a deficit reduction plan. The committee aimed to trim the deficit by $1.2 trillion over the next 10 years, or else automatic spending cuts would be triggered.
  
  In other news, Germany's Bundesbank lowered its growth outlook for Germany in 2012 from 1.8 percent to a range of 0.5 to 1 percent.
  
  
• Just another merger Monday: Gilead (Nasdaq: GILD) to buy Pharmasset (Nasdaq: VRUS) in $11 billion deal, Alleghany Corporation (NYSE: Y) made a bid to acquire Transatlantic Holdings, Inc. (NYSE: TRH), Pearson (NYSE: PSO) entered an agreement to acquire Global Education & Tech (Nasdaq: GEDU), and more!
  
  
• Major PC OEM reports massive net income drop: Hewlett-Packard (NYSE: HPQ) reported a 91 percent decrease in net income, as issues with it's PSG unit and overall pricing pressure eroded margins. Services revenue showed the slowest growth, while it's Imaging and Printing Group reported a decrease in revs.
  
  Hewlett-Packard sees first-quarter 2012 non-GAAP earnings of 83 to 86 cents per share, versus the Street views calling for earnings of $1.11 per share, and fiscal 2012, earnings of at least $4.00 per share, shy of the $4.56 expected by the Street.
  
  
• Existing houses fly off shelves: According to the National Association of Realtor (NAR), purchases rose 1.4 percent to an annual rate of 4.97 million. The number is up from a revised 4.90 million run rate in September. Analysts were looking for a 4.8 million rate in October.
  
  Sales may certainly have seen a boost following housing price drops across the board. Homes already available are selling for 4.7 percent less than in the same period last year, data shows. Borrowing costs are also lower, and end of temporary foreclosure halts may also put more houses on the market.
  
  
• Focus Media gets Muddy: Notable short-seller Muddy Waters began coverage on Focus Media (Nasdaq: FMCN) with a Strong Sell. Following the move, Focus Media shares ended the session nearly 40 percent lower. Muddy Waters cites "overstatement of the number of screens in its LCD network and its Olympus-style acquisition overpayments."

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