U.S. Stocks Pare Early Gains after Weak ISM-PMI Data
U.S. stocks held mild gains during early on Monday, after lackluster PMI data and simmering concerns over the issue of ‘fiscal cliff’ dwarfed better than expected PMI data from China and Greece’s debt buyback plan.
According to Institute of Sully Management, the manufacturing PMI Index hit to its lowest level of the year in November. The Index stood at 49.5 down while economists’ consensual estimate was for 51.3. A reading below 50 signifies economic contraction.
In the meantime, construction spending rose 1.4 percent to an annual rate of $872.1 billion in October, according to the Commerce Department.
Greece, in an effort to trim down its swelling debt, announced its plans to repurchase €10 billion of outstanding debt, triggering a rally in country’s stock market even as bonds surged.
All leading benchmark indexes traded in green territory with Pan European Stoxx 600 Index gaining 0.63%. The euro climbed to a six month high against the U.S. dollar while the ICE dollar index, a measure on U.S. unit’s performance against a basket of six major currencies, hit one month low, following Greece’s debt repurchase announcement.
in Asia, a data provided by the Government of China showed that PMI Index for manufacturing activities stood at 50.6 in November, up from 50.2 in October. This was the best reading in last seven months.
Shares of Dell Inc. (NASDAQ: DELL) rallied on Monday after Goldman Sachs improved its rating to “buy” from “sell”.
The maker of Blackberry smartphones, Research In Motion (NASDAQ: RIMM) slipped after analysts at Canaccord Genuity downgraded the stock from “hold” to “sell”, citing concerns over the launch of Blackberry 10 or BB10.