Market Recap: Lousy Manufacturing Report Drives Stocks Lower
Stocks were down today:
▼ Dow: -0.46 percent
▼ Nasdaq: -0.27 percent
▼ S&P: -0.47 percent
▲ Gold: +0.05 percent to $1,715.40 an ounce
▲ Silver: +0.49 percent to settle at $33.62
▲ Oil: +0.12 percent
Markets were down because:
Stocks edged lower on Wall Street Monday after a weak manufacturing report heightened concern that fiscal deadlock in Washington is already hurting the economy.
The Dow Jones industrial average fell 59.98 points to close at 12,965.60. The Standard and Poor’s 500 dropped 6.72 points to 1,409.46. The Nasdaq composite was down 8.04 points to 3,002.20
U.S. manufacturing declined in November to its weakest level since July 2009, the Institute for Supply Management reported. The ISM’s index fell to 49.5 from 51.7 a month earlier, below the 51.2 reading forecast by analysts. Any number below 50 on the scale means that manufacturing is contracting. Businesses expressed concerns about the “fiscal cliff,” a series of sharp government spending cuts and tax increases scheduled to start Jan. 1 unless an agreement is reached to cut the budget deficit.
The White House and Congress are still seeking to hammer out a budget deal that will avoid the “cliff.” Republicans, led by House Speaker John Boehner, have balked at President Barack Obama’s opening proposal of $1.6 trillion in higher taxes over a decade, a possible extension of the temporary Social Security payroll tax cut and heightened presidential power to raise the national debt limit.
House Republicans on Monday proposed their own 10-year blueprint to President Barack Obama that calls for increasing the eligibility age for Medicare and lowering cost-of-living hikes for Social Security benefits.
Stocks have fluctuated since the Nov. 6 election as investors worried that a deal may not be reached in time to avoid the tax hikes and spending cuts, which economists say could push the U.S. back into recession. The S&P 500 is still 1.3 percent below its closing level on the day that Americans went to the polls, having fallen as much as 5 percent in the weeks following the election.
Wall Street opened higher Monday following news that manufacturing in China, the world’s second-largest economy, grew for the first time in 13 months and after Greece announced details of a bond buyback program. The Dow had been up as much as 62 points shortly after the opening bell.
The yield on the 10-year Treasury note rose 1 basis point to 1.62 percent.
The Associated Press contributed to this report.
- John McCain Lectures Tea Party Senator on How ‘Business’ Gets Done in Congress: ‘That’s What We’ve Been Doing for a Couple Hundred Years’ 592 Comments
- Boy Scouts of America Vote to Allow Gay Members 521 Comments
- Pope Francis’ Sermon Sparks Debate: ‘Even the Atheists’ Have Been Redeemed ‘With the Blood of Christ’ 497 Comments
- Obama Doesn’t Return Marine’s Salute, Shakes Hand Instead — Is This a Protocol Misstep? 393 Comments
- Piers Morgan Bans Dana Loesch From His Show Following Twitter Spat: ‘Show Some Bloody Respect’ 337 Comments
- Game-Changing Bombshell? There’s a Major Twist in the Story About a High School Student’s Lesbian Relationship With a Minor 328 Comments
- Is the Boy Scouts’ Gay Amendment the ‘Beginning of the End’ for the Group? (Plus: Tell Us Where You Stand) 286 Comments
- MSNBC Hosts Martin Bashir and Chris Hayes Claim London Machete Killers Aren’t Terrorists: ‘These Are Just Murderers’ 152 Comments
- Did You Catch the Possibly Policy-Changing Ft. Hood Reference in Obama’s Terror Speech? Read More
- Dem. Rep. Apologizes for Attending ‘Racist, Anti-Semitic and Homophobic’ Speech Read More
- Have You Had Scotch at a NJ TGI Friday’s Lately? You Might Have Been Drinking Rubbing Alcohol Read More
- Venezuelan President Blames Toilet Paper Shortage on the Rich Read More
- This Terrible Chart Shows the Change in Food Stamp Participation Over the Last 10 Years Read More
- Disney Makes Absolutely Mortifying Photoshop Mistake Read More
- Trey Gowdy at It Again — This Time with a Jack Bauer Reference! 117 Comments
- LOOK: Woman Claims to Have Photographed UFO in California Read More
- Lion Named ‘Bonedigger’ and Small Dog Make Most Unlikely Companions Read More
- Rocket Bike Sets Land Speed Record — and Uses a Fuel You Wouldn’t Expect Read More
- How 3D Printing Technology Created a Special Part for Baby’s Windpipe and Saved His Life Read More
- 6 Fascinating Spy Gadgets You’ll Probably Want (and Can Have) After Seeing Read More
- Syria regime unleashes artillery barrage on Qusair
- Journalist and author Haynes Johnson dies at 81
- Toronto mayor denies he smokes crack cocaine
- Gas cylinder blast on Pakistan school bus kills 17
- Late turnovers doom Heat in Game 2 loss, 97-93
- Pacers steal Game 2 from Heat, 97-93
- Official: 2 dead after Angel Flight crashes in NY
- Militants attacks kill 9 in Pakistan