Interest rates declined along with stocks Wednesday, as Wall Street opened November on a downbeat note.
A surprisingly weak report on economic conditions in the manufacturing sector raised concerns about corporate profits and boosted hopes that the Federal Reserve will cut interest rates early next year.
Oil prices held steady after U.S. oil inventories rose only modestly.
The Dow Jones industrial average fell 49.71 points, to 12,031.02. Industrial giants United Technologies and Alcoa led the declines among the 30 Dow stocks. Walt Disney and Merck advanced.
The Standard & Poor’s 500 index shed 10.13, to 1367.81. Losses by Apple Computer, Qualcomm and Google helped push the Nasdaq composite index down 32.36, to 2334.35.
Nasdaq-listed Garmin, a maker of devices for global positioning system technology, sank $8.43, or nearly 16 percent, to $44.98, after posting a disappointing sales gain.
Small-company stocks, which outperformed large-cap stocks last month, stumbled. The Russell 2000 small-company index fell 14.69, to 752.15.
New York Stock Exchange trading volume reached 1.79 billion shares. Losers outnumbered winners by about a 7-4 ratio among NYSE-listed stocks. Nasdaq trading volume totaled 2.01 billion shares, as losers topped winners by an 11-4 ratio.
The yield on 10-year Treasury notes dropped to 4.57 percent from 4.60 percent. Oil for December delivery slipped 2 cents a barrel, to $58.71.
Local news: Milwaukee-based employment services firm Manpower boosted its semiannual dividend by 18.5 percent, to 32 cents a share from 27 cents, payable Dec. 15 to shareholders of record Dec. 5. The company will repurchase 5 million of its 86.6 million shares outstanding.
– Merrill Lynch removed its “buy” rating on executive search firm Heidrick & Struggles, Chicago. Shares fell $1.14, to $39.73.
– Credit Suisse raised its share price target for UAL, Elk Grove Township, parent of United Airlines, to $41 from $32. Shares closed down 70 cents, to $35.42.
– Banc of America issued a “buy” rating on fertilizer producer CF Industries, Long Grove. Shares added 14 cents, to $19.96.
