Stocks Stutter on Modest Holiday Spending

NEW YORK (TheStreet) -- Markets inched lower Monday as the kickoff to U.S. holiday shopping season showed higher volumes but lower spending than the same period a year ago.

Investors will continue to monitor consumer spending patterns, taking a particular interest in online retailers such as Amazon  (AMZN) and eBay  (EBAY) on Cyber Monday, the busiest time of the year for online shopping. eBay shares were among the strongest gainers in the S&P, rising 3.3% to $51.70 while Gap (GPS) was up 2.5% to $41.98. Amazon was off 0.05% to $393.25 while Groupon (GRPN) was 4.8% lower after Goldman Sachs cut its rating on the stock to neutral from buy. The S&P 500 was adding 0.2% to 1,808.54 while the Dow Jones Industrial Average (INDU) was little changed at 16,090.97. The Nasdaq (CCMP) was flat at 4,059.12. U.S. manufacturing activity expanded to 57.3 in November, beating expectations for a result of 55, according to the Institute for Supply Management. U.K. manufacturing expanded at its fastest rate in nearly three years during November, rising to 58.4. "We are at the beginning of what has historically been the strongest calendar month for stocks," Todd Salamone, Shaeffer's Investment Research senior vice president of research told clients in a note. In earnings, Krispy Kreme Doughnuts, Thor Industries and Shoe Carnival are all due to release quarterly results today.

U.S. developers hiked construction spending in October at the fastest pace in more than four years, due to a jump in public building projects. Construction spending increased 0.8 percent in October to a seasonally adjusted annual rate of $908.4 billion, the Commerce Department said Monday.

It's a heavy week for economic releases, with the November government jobs report out Friday after jobless claims and GDP on Thursday. The consensus forecast is for a creation of 185,000 jobs, down from 204,000 the prior month. 

Overseas markets including Germany and the U.K. were weak after the eurozone Purchasing Managers' Index indicated that business activity declined in France and Spain last month.

The Shanghai Composite also fell even after the HSBC November PMI came in at 50.8, remaining in expansionary territory and up from the flash estimate of 50.4. That headline was offset by concerns that China's decision to put an end to a 14-month ban on IPOs might results in a sharp depletion of liquidity from currently-listed stocks.

The FTSE 100 was falling 0.55% while Germany's DAX was flat. The Hang Seng closed up 0.66% while the Shanghai Composite closed down 0.59%.

--By Jane Searle in New York