US close: Stocks lower as China easing fails to lift sentiment
By Iain Gilbert
Date: Tuesday 06 Dec 2022
(Sharecast News) - Wall Street stocks ended the session lower on Monday as market participants digested last month's non-manufacturing purchasing managers index from the Institute for Supply Management and headlines from China.
At the close, the Dow Jones Industrial Average was down 1.40% at 33,947.10, while the S&P 500 lost 1.79% to 3,998.84 and the Nasdaq Composite saw out the session 1.93% weaker at 11,239.94.
The Dow closed 482.78 points lower on Monday, more than reversing modest gains recorded in the previous session despite a better-than-expected non-farm payrolls report.
Stocks traded lower on Monday, ignoring cues from Asian markets 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.
IG's Chris Beauchamp said: "Stock markets are distinctly underwhelmed by China's all-too tentative moves towards reopening its economy, and instead have gone back to worrying about the Fed. Friday's jobs report continues to loom over markets, causing further losses as some dovish bets are pared back. While the pre-meeting blackout means we might be spared any Fed comments, it seems stocks will continue to trade in a negative fashion, at least until the meeting itself."
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 2.6% higher after analysts at Morgan Stanley upgraded the carrier from 'equal weight' to 'overweight'.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Boeing Co. (BA) $185.10 1.22%
Dowdupont Inc. (DWDP) $0.00 0.00%
Honeywell International Inc. (HON) $0.00 0.00%
Merck & Co. Inc. (MRK) $110.04 -0.03%
Johnson & Johnson (JNJ) $178.78 -0.06%
Unitedhealth Group Inc. (UNH) $535.11 -0.21%
Amgen Inc. (AMGN) $284.91 -0.21%
American Express Co. (AXP) $156.08 -0.43%
Dow Chemical Co. (DOW) $51.25 -0.58%
Walgreens Boots Alliance, Inc. (WBA) $41.21 -0.65%
Dow Jones - Fallers
Salesforce.Com Inc. (CRM) $133.93 -7.35%
Walt Disney Co. (DIS) $95.99 -3.52%
Verizon Communications Inc. (VZ) $37.07 -2.91%
JP Morgan Chase & Co. (JPM) $131.36 -2.80%
Chevron Corp. (CVX) $176.56 -2.47%
Home Depot Inc. (HD) $320.08 -2.41%
Goldman Sachs Group Inc. (GS) $371.54 -2.38%
Nike Inc. (NKE) $109.72 -2.30%
Microsoft Corp. (MSFT) $250.20 -1.89%
3M Co. (MMM) $124.62 -1.86%
S&P 500 - Risers
United Airlines Holdings Inc (UAL) $45.03 2.60%
CME Group Inc. (CME) $180.38 2.12%
Gap Inc. (GPS) $15.15 2.02%
MGM Resorts International (MGM) $37.80 1.94%
Boeing Co. (BA) $185.10 1.22%
Incyte Corp. (INCY) $84.08 1.14%
American Airlines Group (AAL) $14.11 1.00%
Yum! Brands Inc. (YUM) $130.94 0.95%
Assurant Inc. (AIZ) $129.55 0.83%
Dollar General Corp (DG) $245.93 0.81%
S&P 500 - Fallers
VF Corp. (VFC) $29.54 -11.17%
Salesforce.Com Inc. (CRM) $133.93 -7.35%
Zions Bancorporation (ZION) $48.44 -7.33%
Dish Network Corp. (DISH) $14.47 -7.01%
Svb Financial Group (SIVB) $209.24 -6.97%
HF Sinclair Corporation (DINO) $52.49 -6.97%
Helmerich & Payne Inc. (HP) $47.19 -6.96%
PNC Financial Services Group (PNC) $153.11 -6.77%
Albemarle Corp. (ALB) $265.23 -6.70%
FMC Technologies Inc. (FTI) $12.03 -6.67%
Nasdaq 100 - Risers
Baidu Inc. (BIDU) $116.92 2.74%
Trip.com Group Limited (TCOM) $32.70 1.36%
Incyte Corp. (INCY) $84.08 1.14%
American Airlines Group (AAL) $14.11 1.00%
JD.com, Inc. (JD) $59.18 0.92%
Activision Blizzard Inc. (ATVI) $76.33 0.75%
Wynn Resorts Ltd. (WYNN) $85.79 0.73%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $472.52 0.25%
Xilinx Inc. (XLNX) $0.00 0.00%
Alexion Pharmaceuticals Inc. (ALXN) $0.00 0.00%
Nasdaq 100 - Fallers
Qurate Retail Inc. (QRTEA) $2.16 -7.69%
Dish Network Corp. (DISH) $14.47 -7.01%
Mercadolibre Inc. (MELI) $881.90 -6.68%
Tesla Inc (TSLA) $182.45 -6.37%
Align Technology Inc. (ALGN) $187.91 -5.29%
Synopsys Inc. (SNPS) $331.27 -4.85%
Workday, Inc. (WDAY) $164.61 -3.73%
Cadence Design Systems Inc. (CDNS) $166.46 -3.46%
DENTSPLY Sirona Inc. (XRAY) $30.64 -3.35%
Amazon.Com Inc. (AMZN) $91.01 -3.31%
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN