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Stocks slide late as strong ISM data renews taper talk

  • A late selloff sent stocks lower, pulling the Dow below 16K and the S&P south of 1800 before barely recovering above those levels, as strong data from the ISM survey of U.S. manufacturing stoked renewed concerns about an early taper of the Fed's monetary stimulus program.
  • Investors are likely to get further clarity with Friday's November jobs report; a substantial improvement in the employment picture could send the signal to the Fed that the economy could withstand an earlier taper.
  • eBay rose after Black Friday online spending reportedly surged 15% to a record $1.2B, but retailers fell as the overall holiday shopping season got off to a more tepid start, with retail sales slipping by an estimated 2.7% during the full Thanksgiving weekend to $57.4B.
  • Treasury prices fell, suggesting that bond investors are growing more worried that a withdrawal of Fed stimulus would reduce demand for U.S. debt; the 10-year Treasury yield rose to 2.8%.
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