Dow sank near session lows to 531, decliners over advancers about 6-1 & NAZ  dropped 431,  The MLP index  was off 3+ to the 223s & the REIT index which are interest rate sensitive dropped 6+ to the 383s.  Junk bond funds declined along with stocks & Treasuries were heavily sold raising yields.  Oil fell 2+ to the 77s near 2022 lows & gold plunged 29 to 177982n unusually wild trading (more on both below).

AMJ (Alerian MLP Index tracking fund)

US demand in China's manufacturing industry has reportedly dropped sharply as the country continues to grapple with COVID-19 lockdowns.  Some US companies have signaled plans to shift away from China.  Already major US companies are planning to pivot some production elsewhere in Asia, such as India & Vietnam.  US manufacturing orders in China are down 40%, according to the CNBC Supply Chain Heat Map.  China's manufacturing purchasing managers' index, which measures the performance of the country's manufacturing industry, came in at 48.0 in Nov, the lowest reading in 7 months, according to the country's National Bureau of Statistics.  Meanwhile, China's non-manufacturing PMI, which reflects business sentiment in the country's service & construction industry, dropped from 48.7 in October to 46.7 in Nov.  China has stuck by its zero-COVID policy amid a rise in COVID-19 cases in recent weeks.  The latest round of lockdowns sparked protests throughout the country, with hundreds of workers demonstrating this week in Zhengzhou at the flagship factory of manufacturer Foxconn, which serves as Apple's (a Fox & NAZ stock) main subcontractor in China. 

US orders in China reportedly fall to jaw-dropping amount during lockdowns

Labor market may skirt U.S. recession: NABE

The Fed’s path to a ‘Goldilocks’ economy just got a little more complicated

Oil futures fell, with US prices settling at their lowest price in more than a week.  The Institute for Supply Management's reading on US service-sector business conditions rose to 56.5% in Nov, despite efforts by the Federal Reserve to ease inflation.  Continued Fed tightening can only reduce demand for oil.  Meanwhile, on the first day of trading after the EU ban on Russian seaborne oil, Russian barrels are flowing unabated with new Asian orders replacing the expiring European ones.  US benchmark WTI crude for Jan fell $3.05 (3.8%) to settle at $76.93 a barrel.  That was the lowest front-month contract finish since Nov 25.

U.S. Oil Futures Settle at Low in more than a Week

Gold declined after briefly tapping a 4-month high, as worries about recent data showing stronger-than-expected US business conditions & wage growth boosted the $ & Treasury yields, along with expectations for more aggressive rate-hikes by the Federal Reserve.  Gold prices for Feb fell $28 (1.6%) to settle at $1781 per ounce on Comex.  It had traded as high as $1822 in early dealings, the highest intraday level for a most-active contract since Aug 10.  The fact that gold turned lower from a key level makes today's reversal eye-catching.  Gold futures settled above $1800 on Thurs for the first time since mid-Aug.  Data from the Institute for Supply Management showed that a barometer of US business conditions at service-sector companies rose to 56.5% in Nov.  The forecast had expected a drop to 53.7%.  Following that data, the ICE US Dollar index was up 0.6% at 105.20 & the 10-year Treasury yield climbed more than 8 points to 3.595%, pressuring prices for gold.  Today's ISM data followed the Nov report on nonfarm payrolls, which revealed the creation of 263K new jobs & a rise in hourly pay of 0.6%.  Separately, US factory orders rose by a more than expected 1% in Oct.  Fri's US jobs data was a big setback for the yellow metal.  The hotter-than-expected Nov jobs number, combined with hot wage-growth numbers reinforced the notion that the Federal Reserve still has a long way to go in its quest to suppress inflation.

Gold prices settle below $1,800 an ounce after a stronger-than-expected ISM services data

Dow Jones Industrials