The S&P 500
(INDEXSP:.INX) fell for the third straight day as profit-taking set in ahead of the data-heavy back half of the week.
Four of the eight S&P sectors finished in the red today, with notable weakness in consumer discretionary, financials, and materials stocks. The strongest group was utilities, which benefited from a drop in US Treasury yields.
Elsewhere, much of the high-beta stock complex was weak, with notably bad action in biotechs, small caps, and emerging markets.
And paralleling Friday and Monday, we had a morning high before a sell-off, though we did see a modest bounce in the afternoon.
There was no domestic economic data today, but automakers reported their November US sales results. General Motors
(NYSE:GM) reported a 14% year-over-year increase in sales and had its best November in six years. Chrysler
(NYSE:TM), and Ford
(NYSE:F) also posted solid sales gains, but auto sector stocks sold off along with the broader markets.
(NYSE:IBM) said that Cyber Monday online sales rose 20.6% year-over-year, with mobile sales up 55.4%.
However, Internet retailer Amazon
(NASDAQ:AMZN) declined in a sell-the-news reaction, as the stock had just rallied 12% off its November low to its $399 all-time high on Monday.
Shares of electric-car maker Tesla Motors
(NASDAQ:TSLA) rose 16.5% to $144.70 after its Model S sedan was found to be defect-free by the German Federal Motor Transport Authority. The news drove optimism toward the US National Highway Traffic Administration’s inquiry into the vehicle. Additionally, Morgan Stanle
y (NYSE:MS) called Tesla its top stock pick within the automotive sector.
Index heavyweight Apple
(NASDAQ:AAPL) was another winner today, rising 2.7% to $566.32 on an upgrade from investment bank UBS
Wednesday's Financial Outlook
Wednesday will be chock-full of economic numbers, starting with the MBA Mortgage Index at 7:00 a.m. EST. That will be followed by the more important November ADP employment report at 8:15 and October Trade Balance at 8:30. From there, we will see November ISM Services numbers and new-home sales for September and October at 10:00, with crude oil inventories at 10:30 and the Fed’s December Beige Book topping it all off at 2:00 p.m.
The earnings calendar is comparatively light, but a number of retailers and apparel companies are reporting, including Express
(NYSE:EXPR), G-III Apparel
(NASDAQ:GIII), and Guess
(NYSE:GES), which could bring some illumination to consumer spending trends as we head into the holiday season.
No positions in stocks mentioned.
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