By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fell Monday as Wall Street
retreated from five-year highs, with uncertainty over Europe
rattling investors and pushing Spanish bond yields higher.
"We had a heck of a run, but you can see the spillover from
Europe today, and we're back to the same old story, with Italian
and Spanish yields in particular spooking European markets," said
Bill Stone, chief investment strategist at PNC Asset Management
Group.
After last week rallying to its first close above 14,000 since
October 2007, the Dow Jones Industrial Average (DJI) fell as much
as 142 points during Monday's session, and was more recently off
116.43 points, or 0.8%, at 13,893.36.
The S&P 500 Index (SPX) declined 13.18 points, or 0.9%, at
1,499.99, with the consumer-discretionary sector hardest hit among
its 10 major industry groups.
The Nasdaq Composite Index (RIXF) shed 36.87 points, or 1.2%, at
3,142.23.
Herbalife Ltd. (HLF) shares declined 3.5% after the New York
Post reported the Federal Trade Commission was investigating the
supplement distributor. Last month, hedge-fund manager Bill Ackman
said he was betting against the stock, calling Herbalife a pyramid
scheme.
Wal-Mart Stores Inc. (WMT) fell 1.6% after J.P. Morgan Chase
downgraded the discount retailer to neutral from overweight.
Oracle Corp. (ORCL) slid 2.4% after the business-software maker
said it would buy Acme Packet Inc. (APKT) for $1.7 billion. Acme
Packet shares jumped 22%.
For every share that rose, nearly four fell on the New York
Stock Exchange, where 283 million shares traded as of 12:45 p.m.
Eastern. Composite volume approached 1.7 billion.
In Spain, Prime Minister Mariano Rajoy is mired in a corruption
scandal amid calls for his resignation from the opposition
Socialist Party. Yields on Spain's 10-year government notes surged
to above 5%.
Reforms implemented in Italy are viewed as at risk by the
increasing popularity of Silvio Berlusconi, with the former prime
minister a contender in general elections slated for later in the
month.
Stocks maintained their losses after the Commerce Department
reported factory orders rose a less-than-forecast 1.8% in
December.
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