Wall Street closed down on Monday as strong economic data failed to extend an eight-week market rally after a report showed the first spending decline on a Black Friday weekend since 2009.
The Dow Jones Industrial average fell 78 points, or 0.48%, to 16,009. The Standard & Poor's 500 Index was down five points, or 0.27%, at 1,801. The Nasdaq Composite Index was down 15 points, or 0.36%, at 4,045.
Institute for Supply Management said the US manufacturing sector expanded last month at its fastest pace since April 2011, exceeding forecasts. Construction spending also surpassed expectations, pushing oil prices to 2-1/2 month highs as investors bet on a spike in energy usage from the resulting higher economic activity.
However, US retailers fell after a report showed the first spending decline on a Black Friday weekend since 2009. Purchases at stores and websites fell 2.9% to $57.4 billion during the four days beginning 28 November Thanksgiving holiday, according to a survey commissioned by the National Retail Federation.
Urban Outfitters Inc. lost 3.5% as retail spending fell on the weekend after Thanksgiving for the first time since 2009.
EBay Inc. climbed 1.6% as online spending on Black Friday rose 15% to a record $1.2 billion, according to ComScore Inc.
Newmont Mining Corp., the world’s second-largest gold producer, fell 4% as the precious metal’s price declined. 3M Co. lost 4.4% after Morgan Stanley downgraded the stock.
Graham Holdings Co., which is changing its name from Washington Post Co., lost 3.6% after the education and media company agreed to sell its headquarters building in downtown Washington to Carr Properties for about $159 million.
3M dropped 4.4% for the biggest loss in the Dow after Morgan Stanley downgraded the stock.
Travelers Cos. slid 1.9% after it was cut to neutral from buy at Goldman Sachs Group Inc.
In Asia, shares outside Japan declined as signs the US economy is strengthening fuelled speculation that the Federal Reserve will soon start tapering stimulus.
The MSCI Asia Pacific excluding Japan Index dropped 0.5% to 472 as of 10:35 a.m. in Tokyo. Japan’s Topix index rose 0.5% after the yen fell to a six-month low versus the dollar. The MSCI Asia Pacific Index, which includes Japan, lost 0.2% to 141.
Hong Kong’s Hang Seng Index retreated 0.7% and China’s Shanghai Composite Index dipped 0.3%. South Korea’s Kospi index dropped 0.7%.
Australia’s S&P/ASX 200 Index lost 0.3% and New Zealand’s NZX 50 Index declined 0.7%. Singapore’s Straits Times Index and was little changed Taiwan’s Taiex index declined 0.3%.