U.S. Stocks Remain Firmly Negative In Mid-Day Trading
(RTTNews) - After coming under pressure earlier in the session, stocks continue to see notable weakness in mid-day trading on Monday. With the drop on the day, the major averages are pulling back further off the record highs set last Wednesday.
The major averages have climbed off their lows of the session but currently remain firmly in the red. The Dow is down 198.89 points or 0.7 percent at 27,852.52, the Nasdaq is down 91.31 points or 1.1 percent at 8,574.16 and the S&P 500 is down 21.55 points or 0.7 percent at 3,119.43.
The weakness on Wall Street comes following the release of a report from the Institute for Supply Management showing a continued contraction in U.S. manufacturing activity in the month of November.
The ISM said its purchasing managers index edged down to 48.1 in November from 48.3 in October, with a reading below 50 indicating a contraction in manufacturing activity. Economists had expected the index to inch up to 49.2.
"November was the fourth consecutive month of PMI contraction, at a faster rate compared to the prior month," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee. "Global trade remains the most significant cross-industry issue."
A separate report released by the Commerce Department showed an unexpected decrease in U.S. construction spending in the month of October.
The disappointing U.S. economic news has offset the earlier positive sentiment generated by some upbeat Chinese manufacturing data.
Traders are also reacting to President Donald Trump announcing plans to reinstate tariffs on metal imports from Brazil and Argentina.
"Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers," Trump said in a post on Twitter.
He added, "Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries."
Software stocks continue to see significant weakness in mid-day trading, resulting in a 1.5 percent drop by the Dow Jones U.S. Software Index. The index is pulling back further off the record closing high set last Wednesday.
Notable weakness also remains visible among telecom and networking stocks, with the NYSE Arca North American Telecom Index and the NYSE Arca Networking Index both down by 1.4 percent.
Semiconductor, retail and commercial real estate stocks have also moved to the downside on the day, moving lower along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index jumped by 1 percent, while Hong Kong's Hang Seng Index rose by 0.4 percent.
Meanwhile, the major European markets moved sharply lower over the course of the session. While the U.K.'s FTSE 100 Index slid by 0.8 percent, the French CAC 40 Index and the German DAX Index tumbled by 2 percent and 2.1 percent, respectively.
In the bond market, treasuries have climbed off their worst levels but remain in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5.7 basis points at 1.833 percent.