U.S. stocks fell on Monday, led by the Nasdaq's decline after data showed weakness in the economy, underscoring views the market's recent rally is fizzling.
Tech and consumer-related shares were the biggest drags on the S&P 500, which is down for a second straight session, but up about 27 percent since the start of September.
Worries about the market's ability to extend its recent gains have increased, given the expected end to the Federal Reserve's stimulus program next month, the recent collapse in commodity prices and the close of another solid earnings season. For a story on hedge fund managers filings, see [ID:nN16280237]
Data showing economic weakness added to the fears. On Monday, a gauge of manufacturing in New York State slid much more than expected in May to its lowest level in five months, the New York Federal Reserve said.
Recent high-flyers and high-beta names on the Nasdaq extended their recent losses, including Priceline.com
Recent price action portends further market weakness, some analysts say.
Last week, we had the SOX (semiconductor index) falling, and this week, the Nasdaq 100 <.NDX> is leading the way down, said John Kosar, director of research at Asbury Research in Chicago. It's weak price activity, and not the kind of activity associated with a normal, healthy bull market that's about to go higher.
Financials helped stem the Dow's losses, including American Express
The Dow Jones industrial average <.DJI> was down 20.43 points, or 0.17 percent, at 12,575.32. The Standard & Poor's 500 Index <.SPX> was down 4.50 points, or 0.34 percent, at 1,332.27. The Nasdaq Composite Index <.IXIC> was down 36.59 points, or 1.29 percent, at 2,791.86.
Among some of the most discouraging corporate results, Lowe's Cos
In the euro zone, finance ministers are likely to back a bailout package for Portugal, with new conditions set by Finland. During a meeting, euro-zone officials were expected to pressure Greece to announce more austerity steps to secure further emergency funding.
International Monetary Fund Managing Director Dominique Strauss-Kahn entered a New York court for arraignment after a weekend arrest on charges of attempted rape of a hotel maid. The case sent shock waves through French political circles and left the IMF in turmoil.
(Additional reporting by Edward Krudy; Editing by Jan Paschal)