By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks on Monday wavered between
small gains and losses after last week's record high for the Dow
Jones Industrial Average and as Chinese data disappointed.
The Dow industrials (DJI) rose 8.65 points, or 0.1%, to
14,405.83.
The S&P 500 index (SPX) slipped almost 1 point, or less than
0.1%, to 1,550.35, with telecommunications and technology hardest
hit and health care and financials the stronger performers among
its 10 sectors.
The Nasdaq Composite (RIXF) lost 6.27 points, or 0.2%, to
3,238.09.
Investors considered economic reports from China, where data
showed that consumer inflation jumped to 3.2% year-on-year in
February, up from 2% in January for the largest rise since April
2012. Part of the rise likely came from the Lunar New Year holiday,
which often produces a spike in prices for food and other goods.
Other data showed industrial product grew more slowly in January
and February. Read: China's inflation climbs; other indicators
soften.
"China's industrial production and consumer spending slowed and
fell below estimates during February," Fred Dickson, chief
investment strategist at Davidson Companies, wrote in emailed
research.
"China's inflation rose to a 10-month high. The data suggest a
dilemma for China's new government leaders as they indicated a
month ago their intention to stimulate their economy when inflation
was not a worry," he said. "The U.S. stock market rally is extended
and ripe for a minor profit-taking pullback," Dickson added.
Last week, the Dow set a string of record closing highs, while
the S&P 500 Index ended Friday at 1,551.18, just 14 points from
its record. See: Stocks up for week; S&P 500 near record.
Money continues to flow into exchange-traded products that track
the S&P 500, a sign retail investors may be regaining
confidence. See: Investors flock to S&P 500 ETFs as record
beckons.
For every three stocks rising four fell on the New York Stock
Exchange on Monday, where 156 million shares traded as of 11:10
a.m. Eastern. Composite volume reached 865 million.
Intrade halted trading, with the Irish online betting service
saying it is looking into possible financial irregularities.
Icahn Enterprises LP (IEP) said it signed a confidentiality pact
with Dell Inc. (DELL), less than a week after investor Carl Icahn
joined those opposed to co-founder Michael Dell's plan to take the
personal-computer maker private. Shares of Dell gained 1% in early
trade. Read: Icahn's firm signs confidentiality pact with Dell.
Shares of Genworth Financial Inc. (GNW) jumped 6.9% after
Barron's reported the recently reorganized life insurer and
provider of mortgage securities could nearly double in the next
year.
Dick's Sporting Goods Inc. (DKS) fell 8.6% after the retailer
projected profit below expectations.
Best Buy Co. (BBY) gained 0.4% after an upgrade by Piper
Jaffray. Kroger Co. (KR) shed 1.1% and Apple Inc. (AAPL) declined
1.2% after analyst downgrades.
European stocks traded lower. Ratings firm Fitch late Friday cut
Italy's credit rating one notch to BBB-plus, citing uncertainty in
the wake of last month's inconclusive parliamentary elections. See:
Italian bond yields edge higher after downgrade.
After much stronger-than-expected labor-market data on Friday,
February retail-sales figures are scheduled this week. See:
Consumers hold key to higher job growth.
Rival retailers and groups representing publishers and writers
have joined to oppose Amazon.com Inc.'s (AMZN) request to control
certain Web domains, including .author, .book and .read. See:
Amazon aim to conttol some domains is opposed: WSJ.
Clothing retailer Urban Outfitters Inc. (URBN) is expected to
report fourth-quarter earnings of 57 cents a share on sales of
$850.5 million, according to analysts polled by FactSet.
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