Stocks are surrendering their gains after the Institution for Supply Management said its non-manufacturing index dipped below the 50 line, to 48.7 in November from 50.6 in October, indicating the service sector has reverted to contracting. Consensus forecasts called for the ISM non-manufacturing gauge to rise to 51.5.
Major indices, which opened fractionally higher, relinquished those gains with the Dow off about eight points. Treasuries, by contrast, pared their losses that came in the wake of a further drop of unemployment claims.
Leading equities lower are retailers, which are reporting lackluster November sales as Black Friday’s spurt couldn’t overcome a slow start to the month. Costco (COST), a winner among value-conscious consumers, reported flat same-store sales (excluding gasoline.) Its shares were trading down nearly 2.9%, at 59.13. Macy’s (M), which reported a 6.1% plunge in November same-store sales, was trading down 3.7%, at 15.70.
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