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

Advertising

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Danziger Draws

Jeff Danziger lives in New York City. He is represented by CWS Syndicate and the Washington Post Writers Group. He is the recipient of the Herblock Prize and the Thomas Nast (Landau) Prize. He served in the US Army in Vietnam and was awarded the Bronze Star and the Air Medal. He has published eleven books of cartoons, a novel and a memoir. Visit him at DanzigerCartoons.

Trump's Mar-a-Lago club and estate in Palm Beach, Florida

Responding to an order from the special master, Judge Raymond Dearie, the Department of Justice last night filed a revised list of the items taken from Mar-a-Lago during a search of the premises on August 8. Judge Dearie ordered the filing in response to implications made by lawyers for Donald Trump in court and in previous court filings that the FBI had planted evidence among the documents and items taken from the Palm Beach estate.

Keep reading... Show less
{{ post.roar_specific_data.api_data.analytics }}