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Stocks: S&P Slumps as Weak Manufacturing Data Stuns Traders

Stock Markets Oct 01, 2019 05:01PM ET
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Investing.com - Stocks stumbled badly to start the fourth quarter as a weak report on U.S. manufacturing prompted broad selling Tuesday.

The S&P 500 was off 1.23%, with the Dow Jones industrials down 1.3%. The Nasdaq Composite dropped 1.13%. The Dow's 344-point decline was its largest one-day point loss since a 623-point drop on August 23.

The weakness was heaviest in classic industrial stocks like 3M (NYSE:MMM), Dow Inc. (NYSE:DOW), General Motors (NYSE:GM), Ford Motor (NYSE:F) and Caterpillar (NYSE:CAT).

Large-capitalization stocks seemed to weather the selling better than small caps. The SmallCap 2000 NR was off 2.35%.

Plus shares of companies that have done recent initial public offerings were hit. Uber Technologies (NYSE:UBER) and Lyft (NASDAQ:LYFT) were down 4.3% and 3.1% respectively. Uber is off 38% from its high right after shares started trading. Lyft is off 55%.

Railroad stocks fell more than 2.5% as the Dow Jones Transportation Average fell more than 2.3%.

The selloff was set off by a weaker-than-expected report on manufacturing from the Institute for Supply Management. The report showed the ISM's manufacturing PMI falling to its lowest level in 10 years.

The report underscored how stress in manufacturing can be amplified throughout the economy. Manufacturing has been hit by weak export markets, especially China, which has been engaged in a bitter trade battle with the Trump Administration. Negotiators are supposed to meet in Washington later this month.

The selloff hit industrial, materials, energy and financial stocks hardest. Financials were weighed down by Charles Schwab's (NYSE:SCHW) announcement it would no longer charge commissions on stock and ETF trades. Schwab shares fell 9.7%. Other discount brokers that rely on commission revenue were also slammed. ETrade Financial (NASDAQ:ETFC) fell 16.4%.

Apple (NASDAQ:AAPL) managed to stay in the black Tuesday, up 0.28%. Microsoft (NASDAQ:MSFT) was off 1.4%. Both maintained market capitalizations greater than $1 trillion. Amazon.com (NASDAQ:AMZN) was flat. Google parent Alphabet (NASDAQ:GOOGL) was down 1.1%. Cisco Systems (NASDAQ:CSCO) fell more than 3.4%

Crude oil futures moved lower and interest rates also fell as many investors decided the safety of their money was more important than making a killing, at least for now.

While the major indexes finished the third quarter with their best nine-month performances since 1997, they have struggled since hitting new highs in July. The S&P 500 is off nearly 2.8% from its July peak, with the Dow 2.8% below its peak and the Nasdaq down 5% from its peak.

The S&P 500 suffered its sixth loss in eight trading sessions and has finished under 3,000 for eight-straight sessions. The index is trading just under its 50-day moving average, a key technical indicator for market confidence.

Spice-maker McCormick (NYSE:MKC), Ulta Beauty (NASDAQ:ULTA), Philip Morris International (NYSE:PM) and credit-card processor Visa (NYSE:V) were among the top performers in the S&P 500.

ETrade (NASDAQ:ETFC), Schwab (NYSE:SCHW), oil-and-gas producer Cimarex Energy (NYSE:XEC) and Diamondback Energy (NASDAQ:FANG) were among the S&P 500's biggest laggards.

Stocks: S&P Slumps as Weak Manufacturing Data Stuns Traders
 

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Comments (11)
Klaus Weyers
Klaus Weyers Oct 02, 2019 1:56AM ET
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we are going much lower, but is has nothing to do with Trump... markets are highly overvalued and lunatic dems and young, inexpetiencef kids a la ACO have no clue.. they do not understand that elites, profit, risk taking, speculation, Entrepreneurship are noble things that should be applauded.. wealth has to be created first before they can steal it ftom the productive people.. but they only know higher taxes and freebies.. with them in charge the Country will be broke in 2 years.. sell any rally.
Lasai Banks
Lasai Banks Oct 02, 2019 1:56AM ET
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I completely agree!
Raslan Din
Raslan Din Oct 01, 2019 10:05PM ET
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When you go downhill you have to step your foot on a harsh rock, once start to break, ???? buckle up.
Vincent Sheu
ShaneS Oct 01, 2019 10:04PM ET
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Why the surprise? You are surprised only because you believe Trump's constant lying.
nguyen dang
nguyen dang Oct 01, 2019 8:16PM ET
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Damm D... I'm x out of your site....duh...
nguyen dang
nguyen dang Oct 01, 2019 8:11PM ET
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Thanks Trump, China sneeze , America caught a cold. keep on with the trade war and we all go broke....duh..
Bruce Ona
Bruce Ona Oct 01, 2019 6:56PM ET
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Did they consider the strike at GM? Have they considered the global warming activists working to shut down industry/mining/energy?
muneeb khan
muneeb Oct 01, 2019 6:43PM ET
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Im not understand the amarican investor who sale stocks on one tweets who sales stock on fake news... Why amarica investors not understand the world naver stop this tweet men will change new men will com fake news com good news will com. Before investor look the company's growth which company stocks monthy giving good growth for long time but now every amarican investor looking one men tweet and fake news... Really this amarican investors make me confuse
Erski Gumby
SB20 Oct 01, 2019 6:43PM ET
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There you go. Your problem lies within yourself. If you’re going to blindly put every American in one category, you already failed. Think about that for a second. No, take a minute or two.
Bade Sahib
Bade Sahib Oct 01, 2019 5:48PM ET
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It is a typical fear trap . The numbers are skewed for Sept Summer holidaya
Ab Ab
Ab Ab Oct 01, 2019 4:24PM ET
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it's coming . save your cash
Emmanuel Robert
Emmanuel Robert Oct 01, 2019 4:19PM ET
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is not fear tramp
 
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