Weekly initial jobless claims fell slightly, but remained at recessionary levels. Consumer spending fell 1% in October which was worse than expected. The Dow lost 70 points to 8412 while spending cutbacks at technology companies lifted Nasdaq which rose 5 points to 1469.
On the upside
Korea-based banks rallied with shares of Shinhan Financial Group (NYSE: SHG) and Kookmin Bank (NYSE: KB) surging.Companies are hibernating over the holidays in order to save money. Cisco Systems (Nasdaq: CSCO) will shut down for 4 days while Hewlett-Packard (NYSE: HPQ) will close its offices for two weeks.
On the downside
Title insurer LandAmerica Financial Group (NYSE: LFG) filed for bankruptcy protection. Fidelity National Financial (NYSE: FNF) recently withdrew a $126 million stock offer to buy the company and instead will buy two of its solvent underwriting units for $139 million. Chicago Title Insurance Co will buy LandAmerica's Commonwealth Land Title Insurance Co for $158 million.
Tiffany & Co. (NYSE: TIF) reported 3rd quarter earnings that beat estimates with international sales offsetting weakness in the U.S. market. The luxury goods retailer lowered its guidance for the year and warned of possible job cuts.
In the broad market, declining issues outpaced advancers by a margin of nearly 2 to 1 on the NYSE and by 5 to 4 on Nasdaq. The Russell 2000 which tracks small cap stocks slipped 2 points to 440.
