Market Update for December 21st, 2012

The US Government continue to play with fire as the Reps et al at the end of the day yesterday determined it made sense to pull the vote for the Plan B fiscal cliff deal as they felt there was not enough support to get the deal passed.  That occurred around 9 last night and immediately markets and futures sold off.  Asia and Europe are off more than half a point while US futures are currently showing about a 1.50% decline pre-opening.  In contrast we are getting a nice bounce in the debt markets across the board by about a half a point at the long end of the curve which will help cushion the blow in portfolios today.

Gold is up about 3 bucks which is light under the circumstances and oil is off over 1% to just over $89 a barrel.

Economic news out of both Canada and the US showed continued economic recovery with CPI stable, personal spending and personal income both increasing vs. estimates.

RIM came with earnings last night and while the loss was less, revenues were better and the cash bleed has slowed, after looking into the numbers further, it would seem that the BB10 will have to be a home run in the New Year to keep this train rolling.  Interestingly, after the news was released last night the stock overseas rallied at first up about 10%.  This morning after dissemination it would seem that all the shine is gone and in the pre-market the stock is looking to open down about 11%.

Courtesy of:

Kenneth A. Dick, BA, CIM, CFP, FCSI
Portfolio Manager & Branch Manager
Independent Wealth Management

www.canaccord.com

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