Wall St slides after manufacturing data, Salesforce tumbles

Perkara utama:
  • Salesforce slides on co-CEO exit plans
  • Dollar General falls on slashing annual profit view
  • U.S. manufacturing shrinks for first time in 2-1/2 years in Nov
  • Indexes down: Dow 1.27%, S&P 0.64%, Nasdaq 0.61%

Wall Street gave up gains made earlier on Thursday as a contraction in manufacturing activity last month clouded data showing a mild easing in inflation and solid consumer spending, while a fall in Salesforce shares dragged the Dow lower.

U.S. for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, and proved to be a trigger for investors to book profits following a rally in the previous session.

"Yesterday's move was so crazy large, this is probably just some natural profit taking," Rusty Vanneman, chief investment strategist at Orion Advisor Solutions, said.

The core personal consumption expenditure (PCE) index, excluding volatile items, eased to 0.2%, against expectations of 0.3%.

"Obviously the (manufacturing) sector is in recession and this basically upholds the fact that we're headed for a recession," said Peter Cardillo, chief market economist at Spartan Capital Securities.

Traders still see an 89% chance that the Fed will increase its key benchmark rate by 50 basis points in December, with the terminal rate expected to be under 5% in May 2023.

Separately, a report from the Labor Department on Thursday showed initial claims for state unemployment benefits dropped 16,000 to a seasonally adjusted 225,000 for the week ended Nov. 26.

At 10:33 a.m. ET, the Dow Jones Industrial Average DJI was down 439.25 points, or 1.27%, at 34,150.52, the S&P 500 SPX was down 26.13 points, or 0.64%, at 4,053.98, and the Nasdaq Composite IXIC was down 69.40 points, or 0.61%, at 11,398.60.

Most megacap growth stocks such as Alphabet Inc GOOG, Apple Inc AAPL, Microsoft Corp MSFT and Tesla Inc TSLA fell between 0.3% and 1.5% as Treasury yields edged higher following an initial dip.

Advancing issues outnumbered decliners for a 1.23-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.14-to-1 ratio on the Nasdaq.

The S&P index recorded 29 new 52-week highs and no new low, while the Nasdaq recorded 68 new highs and 37 new lows.

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