The US markets closed mostly lower on Friday, after giving back gains following disappointing reports on US manufacturing and construction. The second and final reading of the Markit US manufacturing index totaled 53.9 in December, down from 54.8 in November. The index registered a preliminary 53.7 in December. Readings over 50 indicate growth, but the index is now at its lowest point since January 2013. The rate of hiring also slowed to its softest pace since July, though companies are still hiring. Outlays for US construction projects fell 0.3% in November to a seasonally adjusted annual rate of $975 billion. The government revised October’s increase to 1.2%. Looking at private outlays in November, spending rose 0.9% for residential projects, but fell 0.3% for nonresidential projects. For overall public construction projects, spending fell 1.7%.
Separately, contentious labor negotiations at key West Coast seaports are giving US manufacturers a headache. Many executives say work slowdowns are hurting their businesses by hampering the flow of imported raw materials and other goods. The Institute for Supply Management index of US manufacturing conditions fell to 55.5% in December from 58.7% in November, in part for that reason. That’s the lowest reading since June and well below the forecast.
The Nasdaq was down by 9.24 points or 0.20 percent to 4,726.81, S&P 500 dropped 0.70 points or 0.03 percent to 2,058.20 while, the Dow Jones Industrial Average gained 9.92 points or 0.06 percent to 17,832.99.
Indian ADRs closed mostly in green on Friday; Tata Motors was up by 1.56%, HDFC Bank was up 1.23%, ICICI Bank was up by 0.56% and Infosys was up 0.44%. On the other hand, Dr. Reddy’s Lab was down by 0.34%.