(Reuters) - U.S. stocks fell on Monday, putting the S&P 500 on track for its first monthly decline since November, after data hinted the U.S. economic recovery is stalling and Spain's fall back into recession underscored nagging euro zone stresses.
The S&P's four-day rally was in jeopardy as it fell below the technically important 1,400 level. The S&P closed above 1,400 for the first time in three weeks on Friday and that point has been a key resistance for weeks.
A merely modest boost in U.S. consumer spending last month and a private industry gauge showing a much sharper-than expected decline in Midwestern business activity in April suggested the economy entered the second quarter with less steam.
Spain's economy sank into recession in the first quarter as deep government spending cuts to reduce a massive deficit and troubles in the banking sector likely delayed any return to growth. "We have a multiple of issues here.
Spain is casting a negative tone in the market here, but after last week's rally, the market was set for some profit taking," said Tim Ghriskey, chief investment officer at Solaris Asset Management, Bedford Hills, New York.
"The 1,400 level is a bit of an issue too. It's creating that resistance." Banks were among the top decliners on Wall Street after Standard & Poor's cut the credit ratings of 11 Spanish banks on Monday, following its downgrade of Spain last week.
The S&P 500 financial sector index .GSPF fell 0.7 percent while Bank of America Corp (BAC.N) dropped 1.2 percent to $8.15. The Dow Jones industrial average .DJI was down 29.33 points, or 0.22 percent, at 13,198.98.
The Standard & Poor's 500 Index .SPX was down 6.57 points, or 0.47 percent, at 1,396.79. The Nasdaq Composite Index .IXIC was down 19.74 points, or 0.64 percent, at 3,049.46.
Humana Inc (HUM.N) declined 8.6 percent to $80.31 after the company, one of the largest providers of Medicare insurance for the elderly, posted a 21 percent drop in profit.
The Morgan Stanley healthcare payor index .HMO declined 2.3 percent.
Exchange operator NYSE Euronext (NYX.N) reported its quarterly profit fell by almost one-third due to a difficult trading environment and costs from its failed merger with Deutsche Boerse (DB1Gn.DE). Its shares were off 5.5 percent to $25.57.
According to Thomson Reuters data through Monday morning, of the 297 S&P 500 companies that have reported quarterly results so far, 72 percent topped estimates.
A strong earnings season helped lift the benchmark S&P index to its best week since mid-March on Friday.
On the positive side, shares of Sunoco Inc (SUN.N) jumped 19.5 percent to $48.87 after pipeline operator Energy Transfer Partners LP (ETP.N) said it would buy the company for $5.35 billion in stock and cash.
Barnes & Noble Inc (BKS.N) surged about 60 percent to $22.05 after Microsoft Corp (MSFT.O) agreed to invest $300 million in the bookseller's digital and college operations. The deal values the Nook and textbook businesses at $1.7 billion.
reuters.com
The S&P's four-day rally was in jeopardy as it fell below the technically important 1,400 level. The S&P closed above 1,400 for the first time in three weeks on Friday and that point has been a key resistance for weeks.
A merely modest boost in U.S. consumer spending last month and a private industry gauge showing a much sharper-than expected decline in Midwestern business activity in April suggested the economy entered the second quarter with less steam.
Spain's economy sank into recession in the first quarter as deep government spending cuts to reduce a massive deficit and troubles in the banking sector likely delayed any return to growth. "We have a multiple of issues here.
Spain is casting a negative tone in the market here, but after last week's rally, the market was set for some profit taking," said Tim Ghriskey, chief investment officer at Solaris Asset Management, Bedford Hills, New York.
"The 1,400 level is a bit of an issue too. It's creating that resistance." Banks were among the top decliners on Wall Street after Standard & Poor's cut the credit ratings of 11 Spanish banks on Monday, following its downgrade of Spain last week.
The S&P 500 financial sector index .GSPF fell 0.7 percent while Bank of America Corp (BAC.N) dropped 1.2 percent to $8.15. The Dow Jones industrial average .DJI was down 29.33 points, or 0.22 percent, at 13,198.98.
The Standard & Poor's 500 Index .SPX was down 6.57 points, or 0.47 percent, at 1,396.79. The Nasdaq Composite Index .IXIC was down 19.74 points, or 0.64 percent, at 3,049.46.
Humana Inc (HUM.N) declined 8.6 percent to $80.31 after the company, one of the largest providers of Medicare insurance for the elderly, posted a 21 percent drop in profit.
The Morgan Stanley healthcare payor index .HMO declined 2.3 percent.
Exchange operator NYSE Euronext (NYX.N) reported its quarterly profit fell by almost one-third due to a difficult trading environment and costs from its failed merger with Deutsche Boerse (DB1Gn.DE). Its shares were off 5.5 percent to $25.57.
According to Thomson Reuters data through Monday morning, of the 297 S&P 500 companies that have reported quarterly results so far, 72 percent topped estimates.
A strong earnings season helped lift the benchmark S&P index to its best week since mid-March on Friday.
On the positive side, shares of Sunoco Inc (SUN.N) jumped 19.5 percent to $48.87 after pipeline operator Energy Transfer Partners LP (ETP.N) said it would buy the company for $5.35 billion in stock and cash.
Barnes & Noble Inc (BKS.N) surged about 60 percent to $22.05 after Microsoft Corp (MSFT.O) agreed to invest $300 million in the bookseller's digital and college operations. The deal values the Nook and textbook businesses at $1.7 billion.
reuters.com
No comments:
Post a Comment