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S&P 500 tumbles into correction, oil dives to one-year low

Heidi Chung
Reporter


Stocks tumbled across the board on Friday and closed at session lows, and crude oil plunged to its lowest level in one year.

The S&P 500 (^GSPC) dropped 0.66%, or 17.37 points, while the Dow (^DJI) tumbled 0.73%, or 178.74 points. The Nasdaq (^IXIC) fell 0.48%, or 33.27 points as of market close.

This was the worst Thanksgiving week for the stock market since 1939, when President Franklin D. Roosevelt moved the holiday to the third Thursday of November.

Oil (CL=F) got hammered again during Friday’s session, falling more than 6% to a one-year low on continued supply concerns. The commodity has struggled to find its footing after tumbling from its highs in early October and is on pace to have its worst month in 10 years.

Black Friday online sales jumped, according to early data and observations. As of 10 a.m. ET, $643 million was spent, which was up 27.8% from last year, data from Adobe Analytics found. Online sales on Thanksgiving day hit a new record as they surpassed $3.7 billion on the day – up 28% year over year, and online sales made through smartphones also hit a new record.

“Mobile stole the show Thanksgiving Day with smartphones representing more than 50% of traffic to retail sites, as well as record amount of revenue. As consumers turn their focus to Black Friday, we expect them to take full advantage of the many discounts available, driving new records for online sales,” says Taylor Schreiner, a director at Adobe Digital Insights.

NEWS: U.S. asks allies to drop Chinese telecom equipment maker Huawei

The U.S. has approached telecom and wireless companies of foreign allies and asked them to drop Chinese telecom equipment maker Huawei due to cybersecurity risks, according to a report by the Wall Street Journal. As many nations gear up for 5G, the U.S. is concerned that the new technology could be susceptible to espionage and other cybersecurity threats.

STOCKS: Facebook admits to smear campaign, Apple cuts iPhone XR prices in Japan

Facebook (FB) shares fell after the social media giant admitted to hiring Definers Public Affairs to spread negative content on the company’s critics and competitors, including George Soros. In response, George Soros’s philanthropic foundation called for oversight of Facebook by lawmakers.

Apple (AAPL) reportedly cut prices for the iPhone XR in Japan to boost sales, according to the Wall Street Journal. After less than one month, the tech giant will start cutting prices as soon as next week after an underwhelming release in the Asian country. Shares of Apple sank on Friday.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., November 21, 2018. REUTERS/Brendan Mcdermid

ECON: Manufacturing PMI lower than expectations

U.S. Manufacturing PMI for November came in at 55.4 which was lower than economists’ expectations of 55.7.

Markit’s Chris Williamson said the November reading could be signaling trouble ahead. “The November survey does raise some warning flags to suggest growth could slow in coming months. In particular, growth of hiring has waned as companies grew somewhat less optimistic about the outlook. Goods exports also appear to also be coming under increasing pressure, often linked to trade wars having dampened demand. However, it should also be remembered that some pull back in growth was to be expected after October’s numbers were boosted by a post-hurricane rebound, especially given the historically high levels of production, order books and employment,” he said in a statement on Friday.

Heidi Chung is a reporter for Yahoo Finance. Follow her on Twitter: @heidi_chung.

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