US open: Stocks lower following ISM's non-manufacturing PMI
By Iain Gilbert
Date: Monday 05 Dec 2022
(Sharecast News) - Wall Street stocks traded lower early on Monday as market participants digested last month's non-manufacturing purchasing managers index from the Institute for Supply Management.
As of 1525 GMT, the Dow Jones Industrial Average was down 0.79% at 34,157.57, while the S&P 500 lost 1.03% to 4,029.94 and the Nasdaq Composite came out the gate 1.13% weaker at 11,332.46.
The Dow opened 272.31 points lower on Monday, easily reversing modest gains recorded in the previous session despite a better-than-expected non-farm payrolls report.
Stocks traded lower early on Monday, ignoring cues from Asian markets from overnight, where shares rallied after China began to ease certain Covid-19 testing rules in a number of cities and hinted that even more relaxations may follow.
On the macro front, the Institute for Supply Management's non-manufacturing PMI unexpectedly jumped to 56.5 in November, up from 54.4 in October - the lowest reading since May 2020 - and beating market forecasts for a print of 53.3. Business activity increased faster, rising to 64.7 from 55.7, and employment rebounded to 51.5 from 49.1, while a slowdown was seen in new orders and backlogs of orders. At the same time, price pressures continued to ease, coming in at 70 versus 70.7 a month earlier, while inventories shrank less, rising to 47.9 from 47.2.
Elsewhere, S&P Global's composite PMI came to 46.4 in November, little changed from preliminary estimates of 46.3 but down from October's print of 48.2 and pointing to a fifth consecutive decline in private sector business activity. S&P's services PMI was revised slightly higher to 46.2, up from preliminary estimates of 46.1, but also continued to point to a fifth straight month of falling services activity as the reading was the second-sharpest decline since May 2020.
Finally, new orders for US manufactured goods rose 1% in October, according to the Census Bureau, following a 0.3% increase in the prior month and above market expectations for an uptick of 0.7%.
In the corporate space, United Airlines shares flew almost 2% higher after analysts at Morgan Stanley upgraded the carrier from 'equal weight' to 'overweight'.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Apple Inc. (AAPL) $148.93 0.76%
American Express Co. (AXP) $157.63 0.56%
Intel Corp. (INTC) $29.50 0.29%
Boeing Co. (BA) $182.90 0.02%
Dowdupont Inc. (DWDP) $0.00 0.00%
Honeywell International Inc. (HON) $0.00 0.00%
Chevron Corp. (CVX) $180.85 -0.10%
Unitedhealth Group Inc. (UNH) $535.23 -0.17%
Johnson & Johnson (JNJ) $178.55 -0.18%
International Business Machines Corporation (CDI) (IBM) $148.27 -0.27%
Dow Jones - Fallers
Salesforce.Com Inc. (CRM) $140.42 -2.87%
Home Depot Inc. (HD) $320.92 -2.16%
Nike Inc. (NKE) $109.85 -2.09%
3M Co. (MMM) $124.50 -1.96%
Goldman Sachs Group Inc. (GS) $373.70 -1.81%
Verizon Communications Inc. (VZ) $37.51 -1.77%
JP Morgan Chase & Co. (JPM) $133.10 -1.52%
Travelers Company Inc. (TRV) $186.88 -1.40%
Coca-Cola Co. (KO) $63.49 -1.33%
Procter & Gamble Co. (PG) $148.61 -1.33%
S&P 500 - Risers
MGM Resorts International (MGM) $38.12 2.80%
United Airlines Holdings Inc (UAL) $44.60 1.62%
Schlumberger Ltd. (SLB) $53.53 1.39%
Apache Corp. (APA) $47.76 1.37%
Hess Corp. (HES) $145.90 1.31%
Activision Blizzard Inc. (ATVI) $76.64 1.16%
ConocoPhillips (COP) $123.53 1.10%
Seagate Technology Plc (STX) $53.55 1.09%
Occidental Petroleum Corp. (OXY) $68.94 1.07%
Delta Airlines Inc. (DAL) $36.08 1.05%
S&P 500 - Fallers
VF Corp. (VFC) $30.36 -8.61%
Under Armour Inc. Class A (UAA) $9.61 -5.18%
Zions Bancorporation (ZION) $49.69 -4.90%
Sl Green Realty Corp. (SLG) $38.63 -4.86%
Synopsys Inc. (SNPS) $331.52 -4.78%
Kohls Corp. (KSS) $30.12 -4.44%
Under Armour, Inc. (UA) $8.50 -4.28%
Resmed Inc. (RMD) $222.98 -4.26%
Comerica Inc. (CMA) $67.19 -4.18%
Ralph Lauren Corp (RL) $110.76 -4.15%
Nasdaq 100 - Risers
Baidu Inc. (BIDU) $117.37 3.14%
Activision Blizzard Inc. (ATVI) $76.64 1.16%
Seagate Technology Plc (STX) $53.55 1.09%
Apple Inc. (AAPL) $148.93 0.76%
Incyte Corp. (INCY) $83.71 0.70%
Wynn Resorts Ltd. (WYNN) $85.56 0.48%
Meta Platforms Inc. (META) $123.85 0.29%
Intel Corp. (INTC) $29.50 0.29%
Trip.com Group Limited (TCOM) $32.34 0.23%
JD.com, Inc. (JD) $58.74 0.17%
Nasdaq 100 - Fallers
Tesla Inc (TSLA) $184.26 -5.44%
Synopsys Inc. (SNPS) $331.52 -4.78%
Hologic Inc. (HOLX) $73.93 -3.36%
Mercadolibre Inc. (MELI) $915.00 -3.18%
Align Technology Inc. (ALGN) $192.11 -3.18%
NetEase Inc. Ads (NTES) $68.79 -2.98%
Idexx Laboratories Inc. (IDXX) $423.07 -2.81%
Intuit Inc. (INTU) $396.75 -2.74%
Autodesk Inc. (ADSK) $195.97 -2.56%
Workday, Inc. (WDAY) $166.77 -2.47%
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