YAHOO: Stocks settled near the
unchanged mark following relatively quiet day.
Specifically, the S&P 500
posted a loss of 0.3%, while the Nasdaq ended with a gain of 0.3%. Trading
on the NYSE was light with 1.02 billion shares exchanging hands, marking the
lowest level since August.
In economic news, U.S.
manufacturing activity in October fell to the lowest level since 1982,
according to the ISM Index survey. Specifically, the ISM Manufacturing Index
declined 4.6 to 38.9 in October, which was worse than the expected reading of
41.0. The number indicates contraction in manufacturing and the overall
economy.
The Federal Reserve said in
its quarterly survey that 85% of domestic banks have tightened lending
standards on commercial and industrial loans. Roughly 60% of banks tightened
standards on consumer credit card loans and 70% have tightened on prime
mortgages.
Credit markets continue to
show improvement, however, with interbank lending rates, known as Libor,
declining across most terms.
In corporate news, struggling
retailer Circuit City (CC 0.36, +0.10) is closing 155 domestic stores, roughly 20%,
due to its "deteriorating" liquidity position and the weak
macroeconomic environment.
Automakers reported dismal
sales numbers for October, impacted by the slowing economy and credit market
turmoil. General Motors (GM 5.64, -0.15) reported a 45% year-over-year drop in
October North American auto sales on an adjusted basis and said it was probably
the worst industry sales month in the post-WWII era. Ford Motor (F 2.13, -0.06) reported a 30.2% drop in
North American October sales and Toyota Motor (TM 76.46, +0.37) reported a 25.9%
decrease in October U.S. sales.
In commodity trading, crude
oil fell 5.2% to $64.30 per barrel as traders worry that the slowing
global economy will sink demand. Meanwhile, the dollar climbed 0.8% against a
basket of world currencies.
Five of the ten economic
sectors posted a gain, led by telecom (+4.8%). The energy sector (-2.0%) was
the main laggard, falling in conjunction with crude oil prices. DJ30 -5.18
NASDAQ +5.38 NQ100 0.0% R2K +0.2% SP400 0.0% SP500 -2.48 NASDAQ Adv/Vol/Dec
1509/1.79 bln/1234 NYSE Adv/Vol/Dec 1748/1.02 bln/1346