Industrial production in the euro area declined for the second
straight month, causing economists to wonder if growth has peaked.
Production fell 1.1% in November from the prior month, the second
consecutive month of declines. The UK
(INDEXFTSE:UKX) was the worst-performing index in Europe. All major
Asian stock indices fell as well.
US equities opened near the flat line but quickly breached 1,775 in
e S&P 500
(INDEXSP:.INX) early in the session. Although buyers showed up late
in the day, the S&P still closed near the lows of the session.
Dow Jones Industrial
(INDEXDJX:.DJI) was the worst US index performer, dropping 0.5%,
led by declines in
Johnson & Johnson
Procter & Gamble
). Five of the 10 basic sectors in the S&P 500 declined, led by
a 1.2% drop in consumer staples stocks.
Gold, silver, and palladium all suffered declines of more than
2.5%. The fall was attributed to a reduction in bets on Fed
stimulus. The Treasury reopened $13 billion of 30-year bonds today
at a high yield of 3.90% on tepid investor demand.
November retail sales rose 0.7% from the prior month, more than the
0.6% estimate, thanks to strong auto, electronics, and furniture
sales. However, excluding auto and gas sales, the November YoY gain
in sales remained very weak. This comes in addition to retail
reports that show more consumers have been doing their holiday
shopping earlier in the season.
) reported earnings before the market open. The stock fell more
than 10% on slower reported sales in the third quarter, and
guidance for the coming quarter was taken down sharply.
Tomorrow's Financial Outlook
The only notable economic release tomorrow will be the November
producer price index. Year-over-year, prices are estimated to rise
0.8% on increases in gas and oil prices. Core prices ex-food and
energy are estimated to continue to rise at the same 1.4% annual
The only global economic release will be the UK construction
output. There are no scheduled earnings reports.