Markets Hustle: Stocks Drop as Signs of Slowing Growth
NEW YORK (TheStreet) -- U.S. markets traded lower Monday as investors sold shares on signs of economic softness while digesting mixed growth signals from China.
The Institute for Supply Management's December services sector report fell to 53 from 53.9 in the prior month, a report showed today. Expectations had been for a result of around 54.7. On the flipside, U.S. factory orders rose 1.8% in November, narrowly topping estimates for around 1.7%.
- JP Morgan (JPM) is expected to announce this week that it will pay more than $2 billion for its alleged failure to warn over the Madoff fraud scheme. This would bring the bank's penalties to $20 billion to settle investigations over the past year. It's shares were rising 0.60% on Monday. Twitter (TWTR) shares fell 3.9% to $66.33 after Morgan Stanley said investors should sell following the stock's rally.
- S&P Winner & Loser: First Solar (FSLR) was the worst performing stock in the S&P 500, falling 9.7% to $51.26 after being cut to a 'sell' by Goldman Sachs. Facebook (FB) was the top percentage gainer in the index, climbing 4.8% to $57.20.
- The Senate is expected to confirm Janet Yellen's appointment as Federal Reserve chair at around 5:30 p.m. on Monday.
- HSBC/ Markit Economics' purchasing managers' index for services industries in China showed a drop to 50.9 in December, its lowest level since August 2011. Slowing manufacturing activity in China were indicated in reports last week.
- The upturn in the eurozone private sector economy gained momentum in December, according to Markit.
- Germany's DAX was off 0.08% while the FTSE was largely flat. The Nikkei closed down 2.35% - it's largest drop in over two months - as investors took profits on large caps stocks and a stronger currency hurt exporters. The Hang Seng finished 0.58% lower.
- Minutes of the December Fed meeting will be released on Wednesday. November international trade numbers will be released on Tuesday.
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