November ISM Sinks Stocks

The stock market started this morning on a small rally, but once the ISM came in below expectations, stocks quickly turned south. For November, the ISM was 49.5. Frankly, that’s not too terrible, but it was below expectations. For October, the ISM was 51.7 and that’s what economists were expecting for last month.

The ISM usually doesn’t hit the danger area until 44 or 45. Since 1948, the ISM has fallen between 40.0 and 49.9 a total of 43 times; only three were during recessions.

Ford ($F) opened up strongly today on good sales news. November sales were up 6%. Sales of their F-series trucks were up 18%. That’s the highest since 2005. Shares of Ford were as high as $11.70 before the market got weak. That was a seven-month high.

Posted by on December 3rd, 2012 at 3:38 pm


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