For the day, the Dow ended lower by 59.98 points (0.5%) at 12,965.6. Nasdaq ended lower by 8.04 points (0.03%) at 3,002.2. S&P 500 ended lower by 6.72 points (0.5%) at 1,409.76.
Materials and industrials were hardest hit and telecommunications and technology fared the best among its major sectors.
Among economic data expected at Wall Street, the October construction spending rose by 1.4% month-over-month, against the expected increase of 0.4%.
Separately, data showed that business among manufacturers contracted in November and fell to the lowest level in more than three years. The Institute for Supply Management's index of purchasing managers dropped to 49.5% from 51.7% in October. Purchasing managers are the executives who buy raw materials and other supplies for their companies, an activity that tracks closely with how fast the U.S. economy is growing. The ISM report fell short of Wall Street expectations. Market had forecast the index to hold steady at 51.7% in November.
The rhetoric continued among U.S. lawmakers and President Obama regarding the so-called "fiscal cliff" tax increases and spending cuts that are approaching. Traders and investors are more keenly focused on the negotiations among U.S. lawmakers and President Obama regarding the so-called "fiscal cliff" tax increases and spending cuts that are approaching.
The U.S. dollar index was solidly lower on Monday and hit another fresh four-week low. The dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.27% on Monday.
Euro zone finance ministers met again on Monday to further discuss details of Greece's latest bailout plan. Germany on Friday approved a fresh bailout package for Greece. The European markets and raw commodities were also lifted on an improving Euro zone purchasing managers index, although the PMI still showed an overall contraction in November.
Global data showed that China's manufacturing PMI rose to a seven-month high in November. Other Asian countries also posted improving PMI manufacturing numbers on Monday.
In the U.S, the focus of the market place remains on the "fiscal cliff" that is fast approaching. U.S. lawmakers are still jousting on the matter, with not much new on Monday. The market place presently perceives there will be a last-minute agreement among U.S. lawmakers to avoid the fiscal cliff.
The market place is starting to look ahead to next week's last Federal Reserve FOMC meeting of the year, on December 10 and 11. The "Operation Twist" program ends and the FOMC members must decide whether to extend the bond-buying program. Many believe the Fed will continue to purchase U.S. Treasuries and implement "QE4" at next week's meeting.
In the technology sector, Apple added 0.6% after announcing the iPhone 5 will be available in South Korea on December 7, with more than 50 additional countries being added in December, including Brazil, Russia and Taiwan. In notable analyst action, Dell surged 5.5% after Goldman Sachs upgraded the stock to 'Buy' from 'Sell.'
On the upside, supplier of construction materials, Vulcan Materials added 0.5% after Reuters reports indicated the company may receive a friendly bid from Martin Marietta.
Bullion metals ended modestly higher at Comex on Monday, 03 December 2012 2012. A solidly lower U.S. dollar index prompted some fresh bargain hunting following last week's selling pressure in the precious yellow metal. Gold for February delivery rose $8.4 (0.5%) to settle at $1,721.1 an ounce on the Comex division of the New York Mercantile Exchange on Monday. Prices shed 2.3% last week. On Monday, March silver rose 48 cents, or 1.4%, to settle at $33.76 an ounce. Prices shed 2.5% last week.
Crude oil prices ended little higher on Monday, 03 December 2012 at Nymex. Prices moved higher amid some economic reports from US and other parts of the world which pointed to chances of an increased demand of crude in coming months. A lower dollar also pushed prices higher. But prices settled well off session highs as traders mulled over the impending fiscal cliff meeting. On Monday, light and sweet crude oil futures for light sweet crude for January delivery closed higher by $0.18 (0.2%) at $89.09/barrel. Prices rose to a high of $90.33/barrel during intra day trading.
For every two stocks rising three fell on the New York Stock Exchange, where 657 million shares traded and composite volume topped 3 billion by the close.
Indian ADRs ended mixed on Monday. Among financials, while ICICI Bank gained 0.4%, HDFC Bank lost 0.9%. Infosys lost 1% and Wipro Technologies lost 0.9%. Elsewhere, copper producer Sterlite Industries lost 0.13% and car maker Tata Motors ended higher by 0.04%. MTNL lost 3.23%.
For tomorrow, no economic report is scheduled to be released. Earning reports will continue to trickle in.
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