Stocks Mired in Losses

Looking at the day's economic data, the Census Bureau's October construction spending figures showed a 1.2% decline compared with flat spending for September.

The Institute for Supply Management's November manufacturing index registered at 36.2, a 26-year low. Economists were expecting a reading of 37.

"However you look at the numbers the message is the same; manufacturing is in freefall, with output collapsing. We see no prospect for near-term improvement," wrote Ian Shepherdson, chief U.S. economist for High Frequency Economics. He said the survey is an indication that the recession will continue.

In the realm of commodities, crude oil for January delivery was down $4.55 to $49.88 a barrel. On Saturday, OPEC said it will forgo new reductions in output but did not rule out a supply cutback going forward. Gold was down $49.10 to $769.90 an ounce.

Longer-dated U.S. Treasury securities were rising in price. The 10-year note was gaining 24/32 to yield 2.83%, and the 30-year was up 2-3/32, yielding 3.34%. The dollar was rising vs. the euro and pound but falling against the yen.

Overseas, European exchanges such as the FTSE in London and the DAX in Frankfurt were trading lower. In Asia, Japan's Nikkei closed with losses, while Hong Kong's Hang Seng ended on the upside.