by Daniel Costello

Stocks are starting November on a wobbly note and have been bouncing around all day. The reason for today's peripatetic market performance is newly released manufacturing data for last month.

According to the Institute for Supply Management, its measure of U.S. manufacturing activity fell to its lowest level in 26 years last month as credit conditions tightened and as disruptions remained from Hurricane Ike. The trade group reported that its index of manufacturing activity fell to 38.9 in October from 43.5 in September. It was the weakest reading since September 1982 and well below the 41.5 economists had predicted.

One bit of good news today: constuction spending fell less than expected as continued weakness in residential housing was off set by a stronger than expected performances in the non-residential market.