Dec. 1 (Bloomberg) -- U.S. stocks declined as better-than- forecast manufacturing growth and a rally in French and Spanish bonds were not enough to extend the biggest three-day gain in the Standard & Poor’s 500 Index since March 2009.
The S&P 500 slid 0.2 percent to 1,244.59 at 4 p.m. New York time, according to preliminary closing data. The index rose 4.3 percent yesterday as central banks took action on Europe’s debt crisis by making it cheaper for lenders to borrow in dollars.
“Pressures on the financials are still out there,” Timothy Ghriskey, who oversees $2 billion as chief investment officer of Solaris Group LLC in Bedford Hills, New York, said in a telephone interview. “The economic data was positive, but Europe is still a concern. The coordinated central bank action is not a solution. It buys them some time.”
Stocks reversed earlier gains, led by financial companies. JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. were among five banks sued by Massachusetts for allegedly conducting unlawful foreclosures and deceiving homeowners.
Equities rose earlier as manufacturing expanded in November at the fastest pace in five months. Spain and France sold 8.1 billion euros ($10.9 billion) of bonds today, sending yields lower across Europe. Payrolls may have climbed by 125,000 workers in November, after rising 80,000 the prior month, economists surveyed by Bloomberg projected ahead of a Labor Department report tomorrow.
“People are looking for catalysts,” Peter Jankovskis, who helps manage about $2.4 billion at Oakbrook Investments in Lisle, Illinois, said in a telephone interview. “You may have some people wanting to make sure that they are in because they are expecting a big number on the jobs front.”
--With assistance from Inyoung Hwang in New York. Editors: Jeff Sutherland, Michael P. Regan
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