* Automaker shares fall on worry about future sales
* Tesla's stock jumps after Morgan Stanley names it a top
* Amazon.com shares down, with holiday shopping in focus
* Yum Brands' November China sales flat, sending shares down
* Indexes down: Dow 0.7 pct, S&P 0.5 pct, Nasdaq 0.4 pct
By Caroline Valetkevitch
NEW YORK, Dec 3 U.S. stocks fell on Tuesday,
sending the S&P 500 index lower for a third straight session as
shares of retailers dipped after a disappointing start to
holiday shopping and carmakers fell despite
The market's drop was fed by a decline in the S&P consumer
discretionary sector, which fell 1.1 percent. Shares
of Ford Motor declined 3 percent to $16.54 while shares of
General Motors were down 2.7 percent at $38.04 even as
November auto sales for most companies exceeded expectations.
Some investors worry that pent-up demand would no longer
support the current pace of sales gains after 2014, analysts
Among other consumer discretionary shares, Amazon.com Inc
slipped 2 percent to $384.39 and was among the biggest
drags on the S&P 500. The S&P retail index shed 1
percent after a disappointing to start to the holiday shopping
Earlier-than-usual online holiday discounts were expected to
have dampened Cyber Monday sales in the United States. Still
data firm comScore forecast U.S. online sales to have hit $2
billion on "Cyber Monday," the highest since the firm began
tracking such information.
After eight weeks of gains in which the S&P 500 hit a
series of record highs, investors may be locking in profits,
analysts said. The S&P 500 is up 25 percent for the year so far.
"With the market being up so much in November, we're seeing
some healthy profit-taking. It's been a very strong year in
equtities," said Eric Marshall, director of research at Hodges
Capital Management in Dallas, Texas.
Among the day's biggest gainers, Tesla Motors'
stock jumped 14 percent to $141.63 with more than 18 million
shares traded, well above its average levels, after Morgan
Stanley named it a "top pick." Also, Germany's motor transport
authority said on Monday it planned "no further measures" after
reviewing fires in Tesla cars in the United States and Mexico
The Dow Jones industrial average was down 117.23
points, or 0.73 percent, at 15,891.54. The Standard & Poor's 500
Index was down 8.98 points, or 0.50 percent, at 1,791.92.
The Nasdaq Composite Index was down 15.88 points, or
0.39 percent, at 4,029.38.
"We've seen decent, but not great, spending at retailers at
the start of the Christmas season," said Bryant Evans, portfolio
manager at Cozad Asset Management in Champaign, Illinois,
adding, "... online buying is flattening out the impact of the
start of the season."
Investors speculated the Federal Reserve may move to trim
its stimulus earlier than some had anticipated.
Stronger-than-expected data on manufacturing and construction
spending on Monday underscored views the Fed may begin scaling
back its stimulus of $85 billion in monthly bond purchases
sooner than expected.
Many analysts still forecast the announcement will take
place in March, but investors will be closely watching this
week's payroll jobs figures on Friday for clues to the Fed's
One of the biggest percentage decliners was Yum Brands Inc
, which lost 2.6 percent to $75.68 after it said November
sales at established KFC restaurants in China, its top market,
failed to grow despite a successful promotion. It forecast a
return to earnings per share growth in 2014.
Apple Inc acquired social media search and
analytics company Topsy, which specializes in analyzing Twitter
data. UBS upgraded the iPhone maker to "buy." Apple
shares were up 1.7 percent to $560.35.