U.S. Indexes Trade Lower, Obama Demands More Taxes from Rich

Bikram Pandey
04 Dec, 2012
New York City

U.S. indexes traded lower and President Obama demanded more tax revenues from rich tax payers. November auto sales rose and analysts lifted industry annual outlook. Australian central bank lowered its key rate to 3%.

[R]5:40 PM, New York – U.S. indexes traded lower and President Obama demanded more tax revenues from rich tax payers. November auto sales rose and analysts lifted industry annual outlook. Australian central bank lowered its key rate to 3%.[/R]

U.S. indexes struggled and the dollar inched lower as European markets rebound.

President Obama stressed in a televised interview that Republican plan does not offer enough revenue to lower debt by $4 trillion over the next decade. The president added he is willing to accept cuts in some of the welfare and entitlement expenses but wealthy taxpayers will have to pay higher taxes to increase government revenue and lower deficit in the long run.

November auto sales were ahead of expectations and annual sales are likely to reach record high in the last five years.

In corporate news, Atlas Pipeline agreed to acquire all equity interests of Cardinal Midstream for $600 million. Baxter agreed to acquire Swedish dialysis products maker for $4 billion.

Big Lots ((BIG)) surged 12% after the discount retailer revised its earnings outlook to as much as $3.05 a share.

Netflix ((NFLX)) soared 14% to $86.65 after the online streaming video services provider said it signed multi-year deal with Walt Disney Co for animated films.

Elekta six month net sales rose 22% to SEK 4.18 billion. Wolseley first quarter revenue rose 2.1% to £3.325 billion. Philips Electronics estimates fourth quarter restructuring costs to rise 27% to €380 million.

Euro zone industrial producer prices eased in October. German exports increased 3.6% in the third quarter. UK construction activity deteriorated and Spanish unemployment rose in November.

Australian markets halted a 3-day rally and the benchmark index declined 0.6%. Reserve Bank of Australian cut its key lending rate by 25 basis points to 3% and cited global weak economic conditions and current account deficit widened in the third quarter to $14.9 billion.

Commodities, Bonds and Currencies

U.S. treasury yield on 10-year bond fell to 1.60% and on 30-year bond decreased to 2.78%.

The U.S. dollar inched lower to $1.309 to a euro and increased against the Japanese yen to 81.86 yen.

Immediate delivery futures of Texas crude oil decreased 75 cents to $88.31 a barrel and Brent crude fell $1.24 to $109.68, futures of natural gas decreased 5 cents to $3.54 per mbtu and gasoline traded down 3.63 cents to 269.01 cents a gallon.

In metals trading, gold decreased $22.50 to $1,698.50 per ounce and silver decreased 76 cents to $33.01 and copper closed down 0.1 cents to $3.65 a pound.