Stock Market News for December 3, 2013 - Market News
December 03 2013 - 10:06AM
Zacks
Benchmarks ended in negative
territory on Monday as Thanksgiving weekend sales failed to ignite
bullish sentiment among investors. Retail stocks were sold heavily,
thereby dragging the retail sector and the broader markets.
Meanwhile, the upbeat ISM manufacturing report was ignored as
investors cautiously await key labor data on Friday. The drop on
Cyber Monday comes after the benchmarks notched a record eight
consecutive weeks of gains last Friday.
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 0.5% to close the
day at 16,008.77. The S&P 500 slipped 0.4% to finish Monday’s
trading session at 1,800.90. The tech-laden Nasdaq Composite Index
decreased 0.4% to end at 4,045.26. The fear-gauge CBOE Volatility
Index (VIX) advanced 3.9% to settle at 14.23. Total volume on the
consolidated volumes on the New York Stock Exchange, American Stock
Exchange and Nasdaq were roughly 5.2 billion shares. Declining
stocks outnumbered the advancers. For 70% shares that declined, 27%
advanced.
Holiday shoppers were found spending nearly 3% lesser in comparison
to last year’s Thanksgiving sales. The drop came despite the fact
that a record number of people visited shops. According to a retail
trade group, Thanksgiving weekend spending suffered its first ever
decline since the group started tracking the numbers in 2006.
The National Retail Federation reported that retail sales were down
2.7% to $57.4 billion during the Thanksgiving weekend. This
occurred despite a 27% jump in Thanksgiving shoppers. The report
also stated that the average spend of shoppers declined 6% to
$407.02, largely due to reduced prices.
The dismal sales data made investors jittery who chose to sell
retail stocks. Subsequently, shares of J.C. Penney Company, Inc.
(NYSE:JCP), Target Corporation (NYSE:TGT) and Coach, Inc.
(NYSE:COH) dropped nearly 2% each. Urban Outfitters, Inc.
(NASDAQ:URBN) slumped by nearly 4%.
The SPDR S&P Retail (ETF) (NYSEARCA:XRT) lost 0.7% and was one
of the losing sectors among the S&P industry groups. Stocks
such as Office Depot Inc. (NYSE:ODP), PriceSmart, Inc.
(NASDAQ:PSMT), Safeway Inc. (NYSE:SWY), Amazon.com, Inc.
(NASDAQ:AMZN), and Ascena Retail Group Inc. (NASDAQ:ASNA) declined
1.7%, 1.2%, 1.1%, 0.3%, and 2.0%, respectively.
The Consumer Staples SPDR (XLP) lost 0.5% and was a major loser
among S&P 500 industry groups. Stocks such as The Procter &
Gamble Company (NYSE:PG), The Coca-Cola Company (NYSE:KO), Philip
Morris International Inc. (NYSE:PM), CVS Caremark Corporation
(NYSE:CVS), and PepsiCo, Inc. (NYSE:PEP) declined 1.0%, 0.3%, 0.6%,
0.5%, and 0.9%, respectively.
ISM manufacturing index data for the month of November was
published on Monday. The report provided further evidence of growth
in the U.S. economy. ISM data added to expectations that The
Federal Reserve may begin soon begin tapering its $85 billion bond
buying program. The situation will clearer after the Fed’s policy
meeting scheduled on December 18.
According to the Institute of Supply Management, the Purchasing
Manager Index (PMI) for November increased to 57.3% from October’s
figure of 56.4%. This is also above the consensus estimate of
55.1%. The PMI has increased in a progressive manner with
November’s reading being the highest in 2013. The New Orders Index
increased by 3% to 63.6%. The Production Index increased by 2% to
62.8%.The Employment Index also increased by 3.3% to 56.5% and is
above October’s reading of 53.2%. This was also the highest reading
since April 2012. Of the 18 manufacturing industries, 15 reported
growth in November.
Separately, construction spending in October was reported to have
increased by 0.8% to $908.4 billion from September’s $901.2
billion. It was also above the consensus estimate of a 0.4% gain.
The U.S. Census Bureau of the Department of Commerce also reported
that spending on private construction was at a seasonally adjusted
annual rate of $625.7 billion, 0.5% below September’s figure of
$629.0 billion. Residential construction was at $326.9 billion in
October, 0.6% down from September. October month’s nonresidential
construction came in at a seasonally adjusted annual rate of $298.9
billion in October, 0.5% below September’s $300.2 billion.
The energy sector was the biggest gainer among the S&P 500
industry groups on Monday. The Energy SPDR (XLE) gained 0.1%.
Stocks such as Exxon Mobil Corporation (NYSE:XOM), Pioneer Natural
Resources (NYSE:PXD), National-Oilwell Varco, Inc. (NYSE:NOV),
Phillips 66 (NYSE:PSX), and Valero Energy Corporation (NYSE:VLO)
added 0.04%, 0.2%, 0.2%, 0.5% and 2.4%, respectively.
COACH INC (COH): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
NATL OILWELL VR (NOV): Free Stock Analysis Report
OFFICE DEPOT (ODP): Free Stock Analysis Report
PROCTER & GAMBL (PG): Free Stock Analysis Report
PRICESMART INC (PSMT): Free Stock Analysis Report
PHILLIPS 66 (PSX): Free Stock Analysis Report
PIONEER NAT RES (PXD): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
URBAN OUTFITTER (URBN): Free Stock Analysis Report
VALERO ENERGY (VLO): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
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