Wall Street turns bearish into close on weak PMI numbers

Forexpros - U.S. stocks closed lower Monday, as weak PMI numbers pressured shares, while better-than-expected data from China and positive comments from Treasury Secretary Timothy Geithner on the "fiscal cliff" supported sentiment. 
At the close of  U.S. trade, the Dow Jones Industrial Average fell 0.46%%, the S&P 500 index dropped 0.47%, while the Nasdaq Composite index gave back 0.27%. 
Pressuring stocks lower, manufacturing activity in the U.S. deteriorated unexpectedly in November, contracting for the first time in three months, industry data showed on Monday. 
In a report, the Institute for Supply Management said its index of purchasing managers fell to 49.5 in November from a reading of 51.7 in October. 
Analysts had expected the ISM index of purchasing managers to decline to 51.3 in November.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Sentiment strengthened after final data showed that China’s HSBC purchasing managers’ index came in at 50.5 in November from 49.5 in October, indicating that economic activity is picking up. 
On Sunday, Timothy Geithner said that the Republicans would ultimately agree to raise tax rates on the rich to avert a fiscal crisis. 
Markets have been jittery amid negotiations between Democrats and Republicans to avoid a set of spending cuts and tax increases due to come into effect on January 1 if U.S. lawmakers cannot reach an agreement on reducing the budget deficit. 
News Corp surged 1.06% amid reports it is preparing to name Robert Thomson, a close confidant of Chairman and CEO Rupert Murdoch, to lead its new publishing company by the end of next week. 
Financial stocks were also broadly higher, as shares in JP Morgan added 0.24% and Citigroup rose 0.20%, while Bank of America and Goldman Sachs climbed 0.71% and 1.23% respectively. 
Separately, Bank of America was said to be holding off on plans for new checking-account fees that could have affected some 10 million customers by year's end, avoiding a possible repeat of last year's protests over consumer banking fees. 
Airline companies were also in focus, after Singapore Airlines said it was in talks with interested parties, including Delta Airlines, to sell its 49% stake in British carrier Virgin Atlantic. The news sent shares in Delta Airlines down 0.50% 
Boeing added to losses, falling 0.31%, after the company and the union that represents its 23,000 engineers tentatively agreed to resume labor talks on Tuesday, after their negotiations on a new contract ended abruptly on Thursday. 
Elsewhere, Martin Marietta Materials dipped 0.03%, as it was expected to make a friendly offer to buy rival Vulcan Materials, rather than attempt another hostile takeover, according to the Wall Street Journal. 
At the close of European trade, the EURO STOXX 50 added 0.28%, France’s CAC 40  eased higher by 0.26%, while Germany’s DAX 30 climbed 0.40%. 
Investors are awaiting the Canadian interest rate decision and the Australian GDP on Tuesday.

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