The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

New York (AFP) – U.S. stocks Monday fell more than two percent after a surprisingly weak US manufacturing report sparked another round of selling amid concerns about the strength of the global economy.

The Dow Jones Industrial Average tumbled 326.05 points (2.08 percent) to 15,372.80.

The broad-based S&P 500 fell 40.70 (2.28 percent) to 1,741.89 and the tech-rich Nasdaq Composite Index slumped 106.92 (2.61 percent) to 3,996.96.

“This is the beginning of the correction that we have been waiting for,” said Peter Cardillo, chief market economist at Rockwell Global Capital.

The sell-off came after a report showing U.S. manufacturing sector growth slowed sharply in January. The Institute for Supply Management’s purchasing managers index sank to 51.3 from 56.5 in December, not far above the 50 level between expansion and contraction.

Cardillo said economic data “are certainly not good,” but noted that some of the weakness could be attributed to extremely cold weather that depressed consumption and other activity.

Scott Wren, senior equity strategist, said a stocks correction was inevitable after investors excessively bid up stocks in late 2013 on improving economic data.

“We’re in a modest-growth, modest-inflation environment,” Wren said. “People got carried away with a perceived acceleration of the economy,” Wren said.

Wren predicted the S&P 500 could fall as low as 1,700, but recommended that clients use the retreat as a buying opportunity.

AFP Photo/Spencer Platt

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Trump flags wave on the morning of the Jan. 6, 2021 pro-Trump Capitol insurrection.

Reprinted with permission from Daily Kos

There aren't many polling questions these days that draw 90 percent-plus agreement, but Americans are united by one central idea: They believe the country should remain a democracy.

Keep reading... Show less

Close