ISM, Weak Holiday Sales, European Pessimism Send Stocks Lower

[Stocks-to-Watch]

The market fell this morning as the ISM nonmanufacturing index posted anemic growth, retail sales were generally disappointing, and concerns in Europe sent financial stocks lower. Those factors appeared to override a strong jobs report from ADP. The Dow was recently off about 80 points, or 0.7%.

The ISM nonmanufacturing index rose to 52.6 in December from 52 in November, a smaller jump than forecasters had been expecting. In addition, retailers posted mixed results for December same-store sales, and numerous important names lowered their earnings forecasts, including Target (TGT). And European banks slid as banks continue to be heavily reliant on the European Central Bank for funding. UBS (UBS) fell 4.8%, and Credit Suisse (CS) fell 6.9%.

Most U.S.* financial names also slid in early trading, with Morgan Stanley (MS) down 2.1%.



Original Article Source by Barrons.com