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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Dow, S&P Post Worst Day in Seven Months as U.S. Manufacturing Slides, China Weakens

NEW YORK (TheStreet) -- U.S. markets tumbled Monday, the worst intraday performance since June 20, 2013, as a gauge of domestic manufacturing slumped and manufacturing in China weakened.

The S&P 500 plummeted 2.28% to 1,741.89, declining more than 5% from its Jan. 15 record of 1,848.38. The Dow Jones Industrial Average slumped 2.08% to 15,372.80. The Nasdaq shed 2.61% to 3,996.96. Last week, the S&P 500 rounded out its biggest January loss since 2010.

  • Manufacturing growth in the U.S. slowed in January as overall factory activity hit an eight-month low and new order growth fell by the most in 33 years. The Institute for Supply Management said its index of national factory activity dropped to 51.3 last month -- its lowest level since May 2013 -- from 56.5 in December.
  • International markets were lower Monday after China's official Purchasing Managers' Index weakened to 50.5 in January from 51 in December. The FTSE 100 in London closed down 0.69% and the DAX in Germany retreated 1.29%. The Hong Kong market was closed for the Lunar New Year holiday. Stocks in Japan declined nearly 2%.
  • Top laggards on the Dow included Verizon (VZ) and AT&T (T) which shed more than 3% and 4%, respectively, amid a price war between mobile carriers. Whirlpool (WHR) lost 5% after missing earnings expectations on Friday while Walt Disney (DIS) was 3.6% lower ahead of its results this week.
  • Yum Brands (YUM), the parent company of KFC, Pizza Hut and Taco Bell, is expected by analysts after Monday's closing bell to report fourth-quarter earnings of 80 cents a share on sales of $4.26 billion. Automakers are scheduled to release sales results. Ford (F) reported Monday that January sales fell 7% to 154,644 units, while retail sales fell 5% to 113,721 units.
  • Guidance for the first quarter of 2014 has been provided by 58 companies during the fourth-quarter earnings season. Of those, 37 are negative, 21 positive and zero were in line, producing a negative-to-positive ratio of 1.8, lower than the 15-year average, according to S&P Capital IQ's New York-based director for global markets intelligence Christine Short.
  • U.S. construction spending rose slightly in December to its highest level since March 2009, with a gain in private residential projects offsetting weakness in the public construction sector.
  • Federal Reserve Vice Chair Janet Yellen was sworn in as chair of the board of governors of the Federal Reserve System on Monday.
  • In company news, Herbalife (HLF) jumped 7.2% after announcing the offering of $1 billion in convertible notes to help fund the cost of repurchasing its common shares.

-- Written by Jane Searle, Andrea Tse and Joe Deaux in New York

Stock quotes in this article: ^DJI, ^GSPC, ^IXIC, HLF, WHR, VZ, T, DIS 

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,490.35 -24.02 -0.15%
S&P 500 1,876.44 -3.11 -0.17%
NASDAQ 4,130.7570 -30.7010 -0.74%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs