S&P 500: -9.32 (-0.84%)
Stocks finished lower, ending a three-day winning streak, after spending most of the day in positive territory.
A surprising fall in initial jobless claims was offset by an unexpected decline in the service sector. Services are the largest portion of the U.S. economy. Meanwhile, retailers delivered uninspiring November same-store sales, which are sales at stores open at least a year.
Bank of America (BAC) lifted sentiment early in the session, with the company announcing it will repay its $45 billion TARP loan with $26.2 billion excess liquidity and $18.8 billion in proceeds from the sale of “common equivalent securities.” The financial sector was leading the market, but reversed course following downside fiscal 2010 guidance from Principal Financial Group (PFG).
In the bigger scheme of things, the Bank of America news is an encouraging sign as the financial climate is vastly improved from a year ago. Economic reports, though, paint an uneven story. Economic data is undoubtedly improving, but it is important to remember that the road to recovery will be a bumpy one.
Quick Hits
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Peter J. Lazaroff, Investment Analyst
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