Wall Street retreated Wednesday after most of the day’s economic data showed weakness, including a report that manufacturing growth in October was the slowest in more than three years.
NEW YORK (AP) — Wall Street retreated Wednesday after most of the day’s economic data showed weakness, including a report that manufacturing growth in October was the slowest in more than three years.
The Institute for Supply Management, a private research group, reported softness across the U.S. manufacturing sector. New orders, production and prices fell, while hiring was up. Treasurys rallied on the numbers and the dollar fell.
Data on the housing market also bolstered fears of an economic slowdown. Pending home sales for September, fell 1.1 percent, down 13.6 percent from a year earlier. September residential construction spending also fell 1.1 percent, the sixth month that construction spending dropped, the longest stretch of weakness in residential construction in more than a decade.
Before the manufacturing report’s release, stocks were up on strong earnings from MasterCard Inc. and an upbeat forecast for private-sector jobs created in October.
That the indexes didn’t fall harder is an indication “this market is in denial,” said Rob Brown, chief investment officer of Genworth Financial Asset Management, an Encino, Calif.-based money manager with $4.7 billion under management. “It wants to focus on the positives and ignore the negatives.”
According to preliminary calculations, the Dow Jones industrial average fell 49.71, or 0.41 percent, to 12,031.02.
Broader stock indicators were also lower. The Standard & Poor’s 500 index fell 10.13, or 0.74 percent, to 1,367.81, and the Nasdaq composite index fell 32.36, or 1.37 percent, to 2,334.35.