DJ30 PointChange: -236.17 Level: 11255.12 NASDAQ PointChange: -61.20 Level: 2458.54 NQ100 PercentChange: -2.3 R2K PercentChange: -3.2 SP400 PercentChange: -2.7 SP500 PointChange: -26.25 Level: 1160.82 NASDAQ-Adv:382 Dec: 2165 NYSE-Adv:358 Dec: 2692
Set against an already bearish backdrop, market participants reacted
negatively to the Fed's decision to increase capital controls for banks
and underwhelming data from both home and abroad. That left stocks to
record their sixth straight loss and settle at new monthly lows.
The stock market's slide was extended to a sixth straight session,
including an incremental loss late last week. In that time the S&P
500 has fallen more than 7%. In the face of the swoon, Deere & Co. (DE 74.72, +2.80) displayed strength, thanks to an upside earnings surprise and an optimistic outlook.
Broad market participants saw little reason to alter their bearish
mindset when it was learned last evening that the Fed ruled that
top-tier domestic banks with total consolidated assets of at least $50
billion must submit annual capital plans for review, bringing the number
of banks under surveillance to 31. The decision comes at the same time
that many investors have shown aversion to bank stocks and other
financial issues for fear of their exposure to the precarious conditions
The perception of Europe was hardly helped by news that Germany, the
continent's strongest and most diverse economy, held a debt auction that
drew disappointing demand. Germany also reported that its PMI
Manufacturing reading for November fell to 47.9 from 49.1 in the prior
month. The November Manufacturing PMI for the broader eurozone eased to
46.4 from 46.5 in October.
China also issued disappointing data. The country's Flash PMI
Manufacturing reading for November fell to 48.0 from 51.0 in the prior
month. Asia's major averages all moved lower in overnight action.
As for domestic data, initial jobless claims for the week ended
November 19 totaled 393,000, which is barely changed from what was
posted in the prior week. It is also on par with what had been expected
by many economists.
Personal spending during October increased by 0.1%, which is less
than the 0.3% increase that had been broadly expected, but personal
income increased by 0.4% to exceed the 0.3% increase that had been
Durable goods orders for October fell 0.7%, but that is still less
than the 0.9% decline that many had expected. Excluding transportation
related items, durable goods orders actually jumped by 0.7% in the face
of the consensus call for no change.
Although still short of 1 billion shares, trading volume on the NYSE
proved greater than what many had suspected ahead of a holiday. U.S.
markets will be closed tomorrow in observance of Thanksgiving. They will
re-open Friday for a half day of trade.
Advancing Sectors: (None)
Consumer Staples -1.4%, Utilities -1.5%, Health Care -1.5%, Consumer
Discretionary -2.1%, Telecom -2.1%, Industrials -2.3%, Tech -2.4%,
Materials -2.8%, Energy -2.9%, Financials -2.9%