Unexpected Manufacturing Data Causes Markets to Drop; Auto Sales Rebound
The major indices dropped on Monday after the release of several disappointing economic reports. Manufacturing activity unexpectedly hit a three year low for the month of November, negatively affecting global shares and signs of growth in China. Both the S&P 500 and Dow Jones ended in the red after three days of gains. The auto industry had a great day with companies such as Ford (F), Nissan (N) and Chrysler reporting the strongest monthly pace for sales growth in more than four years.A council of regulators met today to discuss risk and possible Libor reforms triggered by the recent rate rigging claims. It was announced that UBS (UBS) will pay over $450 million due to the rigging charge against the company. Meetings continued in Congress to find a way around the impending "fiscal cliff" as the GOP outlined a proposal to increase the eligibility age for Medicare benefits, which would reduce the deficit without raising taxes on the wealthy. The euro climbed against the dollar, hitting a six week high and oil-futures gained for the third session in a row.
Word on the Street
- Auto industry posts November sales gains with Ford (F) seeing a 6% increase.
- Dish Network Corp. (DISH) to release a special non-recurring $1 a share dividend.
- UBS (UBS) to pay more than $450 million on Libor-rigging claims.
- Canada's Saputo Inc. (SAP) agrees to purchase Dean Foods Co's (DF) Morningstar Foods for $1.45 billion.
- The euro reaches a six week high against the US dollar, hopes on Greece and Chinese manufacturing create optimism.
- CSC (CSC) plans to sell its credit services division to Equifax (EFX) for $1 billion cash.
- NYSE Euronext (NYX) announces Indian tech company Infosys (INFY) will switch from Nasdaq.
- Research in Motion (RIMM) Gets Upgraded as Anticipation for BB10 Grows.
- Today text messaging celebrates its twenty year anniversary.
- Why Chobani was an impressive contender for Inc.com's Company of 2012 and managed to grow by 2,662% over the past three years.
Published on Dec 3, 2012By InvestorGuide Staff