By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fell Monday, positioning
Wall Street for its greatest single-session drop so far this year,
as uncertainty over Europe rattled investors and pushed 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
131.66 points, or 0.9%, at 13,878.13.
The S&P 500 Index (SPX) declined 15.40 points, or 1%, at
1,497.77, with the technology hardest hit among its 10 major
industry groups.
The Nasdaq Composite Index (RIXF) shed 41.86 points, or 1.3%, at
3,137.24.
For every share that rose, nearly four fell on the New York
Stock Exchange, where 327 million shares traded as of 1:40 p.m.
Eastern. Composite volume surpassed 1.9 billion.
Herbalife Ltd. (HLF) shares declined 2.4%. The supplement
distributor said in a statement that it was demanding a correction
from the New York Post after the newspaper reported the Federal
Trade Commission was investigating it. Last month, hedge-fund
manager Bill Ackman said he was betting against the stock, calling
Herbalife a pyramid scheme.
Reduced ratings
Wal-Mart Stores Inc. (WMT) fell 1.6% after J.P. Morgan Chase
downgraded the discount retailer to neutral from overweight.
Chevron Corp. (CVX) shed 1% after UBS AG downgraded the oil
producer to neutral from buy.
Merck & Co. (MRK) declined 2% after Morgan Stanley cut the
pharmaceutical firm to underweight from equal weight.
Oracle Corp. (ORCL) slid 2.7% after the business-software maker
said it would buy Acme Packet Inc. (APKT) for $1.7 billion. Acme
Packet shares jumped 22%.
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,
illustrating a decline in nondurable goods that overcame advances
in computers and construction equipment.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires