This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

[video] No-So-Happy Holiday Spending Tempers Stocks

NEW YORK ( TheStreet) -- Markets closed lower Monday as a slow kickoff to the holiday shopping season offset a strong uptick in manufacturing activity.

  • The S&P 500 (^GSPC) lost 0.27% to 1,800.88 while the Dow Jones Industrial Average (INDU) dropped 0.48% to 16,008.64. The Nasdaq (CCMP) declined 0.36% to 4,045.26.
  • Retailers were mixed as Amazon (AMZN - Get Report) slipped while eBay (EBAY - Get Report) surged on the day forever to be known as Cyber Monday, reportedly the busiest time of the year for online shopping. Amazon was off 0.05% to $393.25 while eBay rose 3.3% to $51.70. The Gap (GPS) was up 2.5% to $41.98 while Groupon (GRPN) was 4.8% lower after Goldman Sachs cut its rating on the stock to neutral from buy.
U.S. manufacturing activity expanded to 57.3 in November, beating expectations for a result of 55, according to the Institute for Supply Management. U.K. manufacturing expanded at its fastest rate in nearly three years during November, rising to 58.4.

Some observations:

  • "That manufacturing number was really astounding," Doug Cote, chief market strategist at ING U.S. Investment Management, said in a phone interview. "The ISM manufacturing report blew away expectations ... driven by all the underlying strong new orders, strong employment."
  • "We are at the beginning of what has historically been the strongest calendar month for stocks," Todd Salamone, Shaeffer's Investment Research senior vice president of research told clients in a note. In earnings, Krispy Kreme Doughnuts, Thor Industries and Shoe Carnival are all due to release quarterly results today.
U.S. developers hiked construction spending in October at the fastest pace in more than four years, due to a jump in public building projects. Construction spending increased 0.8 percent in October to a seasonally adjusted annual rate of $908.4 billion, the Commerce Department said Monday.

It's a heavy week for economic releases with the November government jobs report out Friday after jobless claims and GDP on Thursday. The consensus forecast is for a creation of 185,000 jobs, down from 204,000 the prior month. 

Overseas markets including Germany and the U.K. were weak after the eurozone Purchasing Managers' Index indicated that business activity declined in France and Spain last month.

The Shanghai Composite also fell even after the HSBC November PMI came in at 50.8, remaining in expansionary territory and up from the flash estimate of 50.4. That headline was offset by concerns that China's decision to put an end to a 14-month ban on IPOs might results in a sharp depletion of liquidity from currently-listed stocks.

The FTSE 100 fell 0.84%, while Germany's DAX closed off 0.04%. The Hang Seng closed up 0.66% while the Shanghai Composite closed down 0.59%.

--By Jane Searle and Joe Deaux in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $536.15 0.00%
EBAY $28.12 0.00%
AAPL $121.30 0.00%
FB $94.01 0.00%
GOOG $625.61 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs