Stock indexes fell today, with the S&P 500 at a 2.5-week low and Nasdaq 100 at a 3-week low. US financial reports show a sluggish economy, with Nov unemployment at a 4-year high, Oct retail sales flat, and US manufacturing at a 5-month low. Energy producer slump due to WTI crude oil drop to a 4.75-year low.

Stocks received some support from Fed-friendly US economic reports on Nov payrolls and Oct retail sales, hinting at continued monetary easing. Nov nonfarm payrolls rose higher than expected at +64,000, and hourly earnings showed the smallest year-on-year increase in 4.5 years. The Nov unemployment rate climbed to a 4-year high of 4.6%.

US Dec S&P manufacturing PMI dropped to a 5-month low of 51.8, lower than expected. This week’s focus is on US economic news, including expected decreases in initial unemployment claims, increases in Nov CPI, and existing home sales. Overseas, markets are down, with Euro Stoxx 50 falling by -0.68% and China’s Shanghai Composite at a 2-month low.

Interest rates are up, with March 10-year T-notes gaining +3 ticks. T-notes rose after US economic reports and concerns about inflation and Fed policy. European government bond yields are mixed, with German bund yield down -0.2 bp and UK gilt yield at a 3-week high. Eurozone manufacturing PMI fell to 49.2, while the German ZEW survey rose unexpectedly to 45.8.

Read more at Nasdaq: Stocks Slide on Sluggish US Economic News