Earlier sales, a shift to online shopping and stagnant wages meant fewer Americans showed up to stores over the Thanksgiving weekend, the National Retail Federation said Sunday. The trade group estimated that total spending for the four days totaled $50.9 billion, down 11 percent from last year.
Major retailers slumped in response. Macy’s lost $1.72, or 3 percent, to $63.19 and Target fell $1.25, or 2 percent, to $72.75. Best Buy lost $2.15, or 6 percent, to $37.26.
New reports of slowing manufacturing in China as well as in the three largest economies that use the European currency — Germany, France and Italy — also gave investors little reason to cheer.
The Standard & Poor’s 500 index fell 14.12 points, or 0.7 percent, to close at 2,053.44. The losses were widespread: General Electric and other industrial companies led eight of the ten sectors in the index down.
The Dow Jones industrial average dropped 51.44 points, or 0.3 percent, to 17,776.80, while the Nasdaq composite fell 64.28 points, or 1.3 percent, to 4,727.35.
It was a weak start to what has been the stock market’s best month on average. Since 1950, the S&P 500 has ended December with a typical gain of 1.7 percent, according to the “Stock Trader’s Almanac.”
A survey by HSBC showed Chinese manufacturing activity lost steam in November, adding to signs of an economic slowdown. HSBC said its purchasing managers’ index edged down to 50 from 50.4 the previous month. On the index’s 100-point scale, numbers below 50 indicate contraction. China’s economic growth slowed to a five-year low of 7.3 percent in the latest quarter.
In Asia, Hong Kong’s Hang Seng index plunged 2.6 percent, while the Shanghai Composite Index slipped 0.1 percent. Japan’s benchmark stock index Nikkei 225 added 0.8 percent.
Major stock markets in Europe closed with slight losses. Germany’s DAX sank 0.2 percent, and France’s CAC 40 dropped 0.3 percent. Britain’s FTSE 100 slid 1 percent. Russia’s RTS index lost 1.6 percent.
In the bond market, the yield on the 10-year Treasury note rose to 2.23 percent from 2.16 percent late Friday. High demand for U.S. government bonds has kept yields low.
Precious metals surged. Gold jumped $42.60 to settle at $1,218.10 an ounce, while silver surged $1.14 to $16.69 an ounce. Copper rose five cents to $2.90 a pound.
Oil posted its biggest percentage gain in more than two years, stemming a rout that had knocked about $40 off the price of a barrel of crude since June. Analysts still expect oil prices to remain weak given OPEC’s decision last week to maintain its current production targets. That, combined with rising production in the U.S., has created an oversupplied oil market. Benchmark U.S. crude jumped $2.85, or 4 percent, to close at an even $69 a barrel on the New York Mercantile Exchange.
In other trading on the NYMEX:
Wholesale gasoline rose 5 cents to $1.88 a gallon
Heating oil rose 5 cents to $2.21 a gallon.
Natural gas fell 8 cents to $4.01 per 1,000 cubic feet