Stock Market News for December 02, 2014 – December 2, 2014 …

Benchmarks began December on a dismal note as discouraging domestic as well as overseas economic data dented investor sentiment on Monday. Moreover, decline in sales during Thanksgiving weekend also dragged down retail shares on Monday. However, rebound in oil prices boosted energy shares. The Nasdaq registered its biggest one-day decline in seven weeks and the S&P 500 witnessed the same in more than a month.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article

The Dow Jones Industrial Average (DJI) declined 0.3% to close at 17,776.80. The Standard & Poor 500 (S&P 500) decreasing 0.7% to close at 2,053.44. The tech-laden Nasdaq Composite Index closed at 4,727.35; declining 1.3%. The fear-gauge CBOE Volatility Index (VIX) increased 7.2% to settle at 14.29. A total of about 7 billion shares were traded on Monday. Decliners outpaced advancing stocks on the NYSE. For 76% stocks that declined, 22% advanced.

The Institute of Supply Management reported that ISM Manufacturing Index declined slightly in November to 58.7, compared to 59 in October. The reading indicated that manufacturing activity expanded at a slower pace in November compared to that in October. However, the reading came in ahead of the consensus estimate of 58. Production index declined 0.4 point to 64.4 in November.

Moreover, financial data company Markit reported that its U.S. Manufacturing Purchasing Managers Index (PMI) declined to 54.8 in November from 55.9 in October. The manufacturing sector witnessed slowest growth in November since January.

These dismal manufacturing activity reports had a negative impact on the Industrial Select Sector SPDR (XLI). The sector declined 1.3% and was the biggest loser among the S&P 500 sectors. Key industrial stocks including Caterpillar Inc. (CAT – Analyst Report), General Electric Company (GE – Analyst Report), Honeywell International Inc. (HON – Analyst Report) and The Boeing Company (BA – Analyst Report) declined 1.6%, 1.8%, 1.7% and 1.5%, respectively. Eight out of 10 S&P 500 sectors reported losses on Monday.

Separately, it was reported that official purchasing managers’ index (PMI) in China declined 0.5 point to 50.3 in November from 50.8 in October. Also, the final HSBC/Markit manufacturing PMI decreased to 50 in November from 50.4 in October, reaching its lowest level in the last six months. November’s reading is also the threshold point between expansion and contraction.

Moreover, final reading of Markit’s November manufacturing PMI for the Eurozone was disappointing. Markit reported that the index declined to 50.1 in November, its lowest level since Jun 2013. It was also reported that the major three economies in the bloc, Germany, France and Italy, experienced contraction in the manufacturing activity in November. This shows that the common currency bloc is still struggling to recover from weak economic conditions.

The National Retail Federation (NRF) reported on Monday that retail sales declined at an annual pace of 11% to $50.9 billion during the Thanksgiving weekend, registering its second consecutive annual decline. According to NRF, average customers expenditure came at $380.95, declining 6.4% from year ago figure of $407.02.

This disappointing report dragged down the Consumer Discretionary Select Sector SPDR (XLY) on Monday. The sector lost 1.1% and was one of the major decliners among the S&P 500 sectors. Key stocks from the sector including Best Buy Co., Inc. (BBY – Analyst Report), Amazon.com Inc. (AMZN – Analyst Report), Macy’s, Inc. (M – Analyst Report) and Target Corp. (TGT – Analyst Report) declined 5.5%, 3.7%, 2.7% and 1.7%, respectively.

Also, Apple Inc. (AAPL – Analyst Report) registered its sharpest one-day drop since September on Monday. Shares of Apple declined 3.3% to $115.07. Some of the investors recommended the slide as a “mini-flash crash.”

However, oil prices rebounded on Monday, helped energy shares to move upward. Prices of WTI crude oil and Brent crude oil rose 4.1% and 3.3% to $69.00 per barrel and $72.54 per barrel, respectively. The Energy Select Sector SPDR (XLE) gained 0.4% following the increase in prices and was the biggest gainer among the S&P 500 sectors. Key energy stocks including Chevron Corporation (CVX – Analyst Report), Exxon Mobil Corporation (XOM – Analyst Report), EOG Resources, Inc. (EOG – Analyst Report) and Cabot Oil & Gas Corporation (COG) rose 2.6%, 2%, 0.6% and 0.5%, respectively.

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Stock Market News for December 02, 2014 – December 2, 2014 …