Stocks Fall on Manufacturing Data
- Monday, December 3, 2012, 17:44
- Stock Market
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U.S. stocks closed lower on Monday, as disappointing U.S. factory numbers dampened optimism about China’s economic growth. The Dow industrials finished down 59.98 points, or 0.46%, at 12,965.60, while the S&P 500 Index declined 6.72 points, or 0.47%, to close at 1,409.46. The Nasdaq Composite Index shed 8.04 points, or 0.27%, to finish at 3,002.20.
U.S. manufacturing shrank in November to its weakest level since July 2009. The Institute for Supply Management said Monday that its index of manufacturing conditions fell to a reading of 49.5. That’s down from 51.7 in October.
U.S. builders increased their spending on construction projects in October by the largest amount in five months, led by a surge in housing. The Commerce Department said Monday that construction spending rose 1.4 percent in October. It was the largest gain since a 1.7 percent increase in May.
House Republicans on Monday proposed a new 10-year, $2.2 trillion blueprint to President Barack Obama that calls for increasing the eligibility age for Medicare and lowering cost-of-living hikes for Social Security benefits.
Fitch Ratings warned in a special outlook on Monday that the impending tax increases and federal spending cuts that make up the U.S. “fiscal cliff” pose the most significant credit risk to states in 2013.