GLOBAL SENTIMENT
(-) Nikkei down 79 points or 0.92% to 8,463(-) Hang Seng down 388 points or 2.0% to 18,961(-) FTSE 100 down 8 points of 0.15% to 5509Stock averages end sharply lower, logging losses near 1.6%-1.7%. Wall Street extended losses as a Fitch Ratings report issued late in the session called attention to potential U.S. banking risk from a prolonged European debt problem.
Fitch Ratings said Wednesday that the credit outlook for U.S. banks can worsen if the eurozone debt crisis is not resolved in a timely manner.
"Fitch's current outlook for the industry is stable, reflecting improved fundamentals at most banks combined with ratings lower than at pre-crisis levels. However, risks of a negative shock are rising and could alter this outlook," the ratings agency said.
Throughout the day, European debt turmoil dictated the market's direction. Bond purchases, which were being relied on for cash flow to rein in the eurozone's crisis, were more modest than hoped, and France and Germany clashed on whether or not the ECB should stage a more aggressive intervention to halt the eurozone's accelerating debt crisis.
Limiting the downside was more positive U.S. economic data, which showed increased factory production and declining prices for consumers, provided some support that the world's largest economy is still on track to a recovery. The Federal Reserve reported this morning that the output from U.S. factors rose 0.7% last month, stronger than the 0.4% gain expected by analysts, according to another MarketWatch report.
Also, U.S. inflation appears to be in check, mainly due to lower gas prices, as the Labor Department reported that the consumer price index fell by 0.1% in October. Still, the core inflation rate rose 0.1%, according to a MarketWatch report on the data.
Crude-oil futures rose more than 2% on Wednesday, breaking through the $100-a-barrel mark for the first time since June as investors cheered news about a pipeline alleviating supply bottlenecks. Canada's Enbridge Inc. agreed to buy a 50% stake in a pipeline that moves oil from the Gulf of Mexico to Cushing, Oklahoma, the delivery point of the benchmark New York-traded oil. Enbridge also announced it was reversing the pipeline's flow, immediately lighting up hopes the bottlenecks in Cushing would be eased.
In company news:
Shares of Abercrombie & Fitch Co. (ANF) slumped after disappointing earnings.
Target (TGT) reported fiscal-third-quarter earnings rose 3.7% as same-store sales grew and the retailer's bad-debt expenses declined.
Abercrombie & Fitch's earnings fell short on margin miss.
Shares of Dell Inc. fell Wednesday, a day after the company missed sales expectations and warned of the potential impact of the Thai flooding on near-term sales.
UPSIDE MOVERS
(+) ABIO up on results of atrial fibrillation and pharmacogenetic data from the BEST trial
(+) RVM up after receiving an affirmative decision for appeal relating to the ESA
DOWNSIDE MOVERS
(-) FTWR down on Missed Interest Payment, Board Resignations, Impairments and Losing Listings Compliance
(-) ZOOM fell After Q3 Revenue Shortfall
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