Daily Data Flow: Investors Take Cover; Dow Falls; Euro Fears »
Obama Victory Leads Wealthy to Make Quick Pre-2013 Moves (Bloomberg)
President Barack Obama’s re-election means his administration will push to let tax cuts enacted during the George W. Bush era expire for high earners, as scheduled, at year-end. “Acceleration of investment income is clear,” said Elda Di Re, partner and personal financial services area leader for Ernst & Young LLP in New York. “If anyone was planning on realizing a gain in the next two to three years on either securities or real estate, there’s a considerable amount of money to be saved.”
Dow Falls to Lowest Level Since July Amid Greek Concern (Bloomberg)
U.S. stocks declined, extending losses after the re-election of President Barack Obama and sending the Dow Jones Industrial Average to the lowest level since July, amid concern about Greece’s financial aid payment. “It’s hard bargaining for Greece,” said Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Va., which oversees about $47 billion. “The risk of a recession is still out there. Apple might be a victim of its own success because it’s risen so much. With its huge market cap, as Apple goes, so goes the broader market.”
Global Stocks Sag on U.S. Fiscal Fears, Euro Falls on ECB Inaction (Reuters)
Global stocks fell further on Thursday on concerns about a looming fiscal crisis, while the euro fell to a two-month low after the European Central Bank refrained from taking more action despite signs of further economic slowdown. The somewhat encouraging news in Europe curbed safe-haven bids for U.S. and German government debt, but persistent unease about the region’s debt woes and the gridlock in Washington deterred any meaningful selling in bonds.