By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks continued the previous
session's downward drift on Monday after Markit's initial
purchasing managers index for March fell slightly.
The S&P 500 index (SPX) was 5 points, or 0.1%, lower at
1,863.86, with health-care stocks leading the losses. The Dow Jones
Industrial Average (DJI) was nearly flat at 16,301.94.
The Nasdaq Composite (RIXF) dropped 25 points, or 0.6%, with
biotechnology stocks hit hardest.
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The initial or "flash" Markit PMI for the U.S. fell to 55.5 in
March from 57.1 in February, but still showed improving conditions
for manufacturers. Readings over 50 in the purchasing managers
index indicate growth.
There is no other economic news scheduled for Monday. More Fed
officials are scheduled to speak later in the week, with St. Louis
Fed President James Bullard set to give two speeches in Hong Kong
on Wednesday, while Cleveland Fed President Sandra Pianalto will
speak at an investment conference in Dayton on Thursday. Bullard is
not a voting member of the Fed policy-making committee this year,
while Pianalto is.
In corporate news, Herbalife Ltd. (HLF) rallied 6.2% after the
nutritional-products firm said it nominated three additional Carl
Icahn designees to its board.
Apple Inc. (AAPL) rose 1%, after news over the weekend that the
tech giant is in talks with Comcast Corp. (CMCSA) about teaming up
for a streaming-television service.
St. Jude Medical Inc. (STJ), pared premarket gains and was 0.7%
higher after the U.S. Food and Drug Administration granted
approvals for three of the medical device maker's pacemakers
including its Allure Quadra.
After selling off on Friday, biotech stocks are continuing to
slide. The iShares Nasdaq Biotechnology ETF and Nasdaq
Biotechnology index fell sharply. Gilead Sciences Inc (GILD) was
down 2.5%, Biogen Idec Inc (BIIB) fell 1.9%.
First Solar Inc. (FSLR) slipped 1% after rallying 36% last week,
when it was the best performer in the S&P 500. The solar
company last week said it expects its sales to rise in 2014 to
about $4 billion, from $3.3 billion last year.
In other financial markets, metals prices were mixed, while oil
inched higher. European stocks slid after posting solid weekly
advances last week.
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