For the day that ended on Monday, the Dow Jones Industrial Average fell 162.87 points, or 1.3%, to finish at 12,021.4 on Monday. The Nasdaq Composite retreated 34.6 points, or 1.31%, to 2,612.3. The S&P 500 Index shed 18.7 points, or 1.5%, to 1,236.5.
All ten economic sectors ended lower led by financials, materials, energy and industrial sectors. Twenty-eight out of thirty Dow components ended lower led by Intel and Bank of America. Mac Donalds and Intel were the sole Dow winners.
Reports from last week's eurozone summit initially generated a positive response, but many traders expressed skepticism in the ability of eurozone members to efficiently implement plans and reach an agreement on those topics that couldn't be brought to a consensus. The concern that the process will simply continue to slog along without producing real results sent yield spreads higher on debt from Italy and Spain, and also spurred concerted selling among the region's major bourses.
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Italian borrowing costs rose on Monday, with the yield on the 10-year note up 30 basis points to 6.53%, close to the 7% level deemed sufficient to push Italy's government into default if sustained.
In addition to concerns about Europe, market participants dealt some relatively discouraging data from China. Although China experienced export growth during November that exceeded what some had anticipated, the rate of increase was slower than that of the prior month.
Souring sentiments further, Dow component and semiconductor bellwether Intel issued a disappointing outlook that only exacerbated weakness among stocks. The stock ended lower by 4% today.
Crude prices ended considerably lower on Tuesday, 12 December 2011 at Nymex. Prices turned pale due to demand concerns and as the dollar headed up substantially higher. The dollar turned strong mainly against the euro. Prices settled at almost two week lows. Light and sweet crude for January delivery dropped $1.64 (1.7%) to $97.77 a barrel on the New York Mercantile Exchange on Monday.
In the currency market on Monday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies rose by about 1.1%.
Precious metals ended substantially lower on Monday, 12 December 2011 at Comex. Prices turned pale as the dollar headed up substantially higher. Gold for February delivery ended lower by $48.6 or 2.8%, to end at $1,668.2 an ounce on the Comex division of the New York Mercantile Exchange on Monday. On Monday, silver prices for March delivery shed $1.25 or 3.9% to end at $31.
For every stock rising four fell on the New York Stock Exchange, where 777 million shares traded hands. NYSE composite volume was 3.6 billion.
Indian ADRs ended substantially lower on Monday. In the banking space, ICICI Bank ended down 7.1% at $26.31 and HDFC Bank slipped 5.2% at $26.78. In the telecom space, MTNL ended down 9.5% at $0.95 and Tata Communication ended down 3.1% at $7.3. Among others, Tata Motors ended down 7% at $16.78 and Sterlite ended down 5.8% at $7.52.
For tomorrow, retail sales and ex auto retail sales are the economic data expected. Other than that, couple of earning reports will continue to trickle in.
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