There was frenzied buying of net stocks while CNBC personalities generated fear of missing out on the next exponential high flyer in tandem with taking credit for calling the last one.
There's a lot of cash and gullibility out there. It only takes a Cramer and a few other publicized market commentators to get the ball rolling
"Listen to us and don't miss out on the big HB turnaround."
Retailers starting to see pressure from consumers tightening their belts. I guess the analysts will reiterate buys on HBs as "consumers are obviously foregoing other purchases while saving for a new home."
Stocks Fall on Purchasing, Retail Sales
Thursday November 30, 12:31 pm ET
By Tim Paradis, AP Business Writer
Stocks Lower on Purchasing Index, Retailers' Sales Figures
NEW YORK (AP) -- Stocks fell Thursday after Wall Street received a weak reading on manufacturing in the Midwest and retailers turned in mixed sales results for November.
The Chicago Purchasing Manager's index came in at 49.9 for November, a decline from 53.5 in October. A reading below 50 suggests economic contraction; it was the first reading below 50 since April 2003. Investors' concern is that the index is a precursor of the nationwide purchasing managers report to be issued Friday by the Institute for Supply Management.
Also weighing on the market was Wal-Mart Stores Inc.'s announcement that sales at stores open at least a year, an important retail benchmark known as same-store sales, would likely be flat to up 1 percent in December. The forecast from the world's largest retailer raised concerns about the health of consumer spending.
Elizabeth Weymouth, global investment specialist at JP Morgan Private Bank, contends investors are examining the personal income data as well as an increase in weekly jobless claims as they try to determine whether the economy can pull of a soft landing.
In midday trading, the Dow Jones industrial average fell 46.22, or 0.38 percent, to 12,180.51.
Broader stock indicators also fell. The Standard & Poor's 500 index was down 2.89, or 0.21 percent, at 1,396.59, and the Nasdaq composite index was down 4.42, or 0.18 percent, at 2,427.81.
Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.47 percent from 4.52 percent late Wednesday. The dollar was mixed against other major currencies and the British pound reached a 14-year high against the dollar. The move came amid the U.S. economic news and after Germany said the number of people out of work there fell below 4 million for the first time since 2002. Gold prices rose.
Light, sweet crude was up 54 cents at $63 on the New York Mercantile Exchange. Prices have risen steadily in recent days as inventories fell more than expected. The move has pressured stocks.
The Labor Department also reported that 357,000 recently laid off workers filed jobless claims last week, a higher-than-expected increase of 34,000 from the previous week.
The Commerce Department reported that consumer spending rose 0.2 percent in October after falling the same amount in September. Wall Street has been concerned about how consumers would reconcile forces such as a cooling housing market and a drop in gas prices from earlier in the year as they head to the malls for holiday shopping.
The consumer spending data appeared to run counter to the news from Wal-Mart, which was down 64 cents at $46.25. Wall Street has been trying to determine whether the retailer's difficulties are mostly its own or whether they reflect a broader pullback among consumers.
"We think U.S. growth is slowing but there's no recession in sight," Weymouth said. "Even though we've seen some strength, we expect a consumer slowdown but not a meltdown in 2007."
In other corporate news, Pfizer Inc. rose 59 cents, or 2.2 percent, to $27.66 after raising its full-year profit forecast and said its development pipeline would produce a number of late stage products in the coming years.
Teen clothing retailer Abercrombie & Fitch Co. posted a 3 percent decline in November same-store sales rather than a 3 percent increase as Wall Street had been expecting. Abercrombie was down $2.99, or 4.3 percent, to $66.60.
Gap Inc. fell 43 cents, or 2.3 percent, to $18.64 after the clothing chain showed a wider-than-expected drop in November same-store sales.
Cardinal Health Inc., which provides health care services, rose $2.97, or 4.8 percent, to $64.80 after announcing plans to sell its business that makes and packages medication for pharmaceutical and biotech companies.
CPI Aerostructures Inc., which makes aircraft parts, rose 86 cents, or 15.3 percent, to $6.50 after the company said it received a $6.9 million order from the U.S. Air Force.
The Russell 2000 index of smaller companies was down 0.79, or 0.10 percent, at 783.37.
Advancing issues barely outnumbered decliners on the New York Stock Exchange, where volume came to 716.4 million shares, compared with 633.9 million traded at the same point Wednesday.
Overseas, Japan's Nikkei stock average closed up 1.23 percent. Britain's FTSE 100 closed down 0.59 percent, while Germany's DAX index was down 0.86 percent, and France's CAC-40 fell 1.00 percent.
New York Stock Exchange: nyse.com
Nasdaq Stock Market: nasdaq.com |
