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* Trump to restore tariffs on Brazil, Argentina imports
* U.S. factory sector contracts again in November
* Chinese PMI numbers better-than-expected
* Retail stocks in focus on Cyber Monday
* Indexes fall: Dow 0.80%, S&P 0.80%, Nasdaq 1.23%
(Changes comment, updates market action)
By Arjun Panchadar
Dec 2 (Reuters) - U.S. stocks fell on Monday after President
Donald Trump said he would restore tariffs on metal imports from
Brazil and Argentina, while weak domestic manufacturing data
fanned worries of a slowing economy due to a prolonged trade war
with China.
The U.S. economy's manufacturing sector contracted for a
fourth straight month in November, as new order volumes slid
back to around their lowest level since 2012. Construction
spending also unexpectedly fell in October. The figures were in sharp contrast to recent economic
indicators that had reassured investors of a resilient domestic
economy. Global markets had also cheered an unexpected rebound
in Chinese manufacturing earlier in the day. MKTS/GLOB
However, Trump's tweet about restoring tariffs on U.S. steel
and aluminum imports dampened sentiment. The news sent shares of
U.S. steel makers including U.S. Steel Corp X.N and AK Steel
Holding Corp AKS.N up 3.9% and 6.9%, respectively.
"It is all about the macro news today and that is basically
overshadowing the good news on Black Friday and Cyber Monday,"
said Peter Cardillo, chief market economist at Spartan Capital
Securities in New York.
"The fact that the manufacturing sector is still in
recession obviously also rekindles trade worries."
Energy shares .SPNY rose 0.54% tracking oil prices. O/R
The gains were an exception, with the other 10 major S&P 500
sectors trading lower. The technology sector .SPLRCT slipped
1.56% and was the biggest drag.
Retail stocks were in focus, with Cyber Monday sales
expected to hit a record following $11.6 billion in online sales
on Thanksgiving and Black Friday. Still, the S&P 500 retail
sector .SPXRT was down 1.25%. Wall Street had been on a record-hitting spree last month
mainly on the back of hopes of a trade truce.
"We are coming off the market high ... any negative news is
going to cause investors to take profits," Cardillo said.
At 11:41 a.m. ET the Dow Jones Industrial Average .DJI was
down 224.00 points, or 0.80%, at 27,827.41, the S&P 500 .SPX
was down 25.21 points, or 0.80%, at 3,115.77 and the Nasdaq
Composite .IXIC was down 106.64 points, or 1.23%, at 8,558.83.
Among other stocks, Roku Inc ROKU.O dropped 16% after
Morgan Stanley downgraded its shares. Declining issues outnumbered advancers for a 2.38-to-1 ratio
on the NYSE and a 2.53-to-1 ratio on the Nasdaq. The S&P index
recorded 16 new 52-week highs and two new lows, while the Nasdaq
recorded 54 new highs and 22 new lows.