Shares slide into red after long winning spell

Stocks on Wall Street fell slightly at the start of a week in which the Dow and S&P are both bidding for a ninth successive week of gains.

After a long stretch of gains, signs of caution starting to creep into the stock market are not entirely unexpected, even with today’s bullish set of manufacturing reports.

Heading into the crucial festive shopping season, the focus of investors may well be pin-pointed on how well sales have been going at retailers across the US.

The US National Retail Federation estimates that the number of shoppers on Thanksgiving Day grew 27% from last year, rising from 35 million last year to 45 million this year. This appears to have cannibalised some of the business from Black Friday, however, with a 2.7% fall in sales over the whole weekend, according to estimates from the federation, with the average spend per head down close to 6% and this has weighed on stock prices.

Today is ‘Cyber Monday’ though, and with big increases in sales announced by Amazon and eBay, there are reasons to feel upbeat about the performance of online retailers.

Heading into the last half an hour of trading in New York, the Dow was off 0.26% or 42 points at 16044, while the S&P 500 also dropped, losing 0.12% to stand at 1803.7.

US motor vehicle sales figures for November are released tomorrow.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.