By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks extended losses on Monday
after a weaker-than-expected reading on manufacturing data added to
the downbeat mood, with investors already shaken by concerns over a
slowdown in China.
U.S. manufacturers expanded in January at the slowest rate in
eight months as the pace of new orders sharply decelerated,
according to the closely followed ISM index. The Institute for
Supply Management index sank to 51.3% from 56.5% in December.
That's the lowest level since last May. Economists surveyed by
MarketWatch had expected the index to drop to 56.0%. Read: How
reliable are ISM reports?
Shortly after the opening bell, the S&P 500 index (SPX) was
down 12 points, or 0.7%, at 1,770.23, falling below the key level
resistance level of 1,775.
The Dow Jones Industrial Average (DJI) fell 116 points, or 0.7%,
to 15,580.23. The Nasdaq Composite (RIXF) shed 38 points, or 1%, to
4,064.66. Follow our stock market live blog.
The main indexes ended January with the steepest losses in more
than a year, as disappointing data from China, which triggered
selloffs in emerging-markets currencies over the past two weeks,
and worries over deflation in the euro zone forced investors to
flee equity markets and seek safer assets.
Less-than-stellar earnings results from corporations did little
to alleviate fears among investors.
Shares of Jos. A. Bank Clothiers Inc. (JOSB) fell 3.5% after The
Wall Street Journal reported Sunday that the company is in talks to
buy fellow apparel retailer Eddie Bauer, citing sources. Jos. A.
Bank and Men's Wearhouse Inc. (MW) have been locked in a monthslong
battle to buy each other out. Shares in Men's Wearhouse slid
5.2%.
Herbalife Ltd. (HLF) shares jumped after the company said it
plans to offer $1 billion of convertible notes and use the proceeds
to buy back shares. However, gains petered out and the stock was
0.4% higher.
Ford Motor Co. (F) shares fell 2.7% after the car maker reported
a 7% drop in January sales. General Motors Co. (GM.XX) reported
that its U.S. sales in January fell 12%, more than expected by
analysts. The stock fell 2.4%.
In other markets, the Nikkei Stock Average fell 2%, putting it
in a technical correction as it closed at 14,619.13, which is just
10% off from a Dec. 30 high of 16,291.
European stocks markets moved lower on Monday, mirroring a
negative mood in Asia, after Chinese manufacturing data added to
fears about a slowdown in the world's second-largest economy. The
dollar (DXY) was mostly lower, and oil was flat, while gold (GCH4)
rose.
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