Wall Street falls after factory data, last week's records

NEW YORK Mon Apr 1, 2013 7:03pm EDT

1 of 2. Traders work on the floor at the New York Stock Exchange, April 1, 2013.

Credit: Reuters/Brendan McDermid

NEW YORK (Reuters) - Stocks fell on Monday in one of the lightest volume days of the year, pulling back after the S&P 500's record closing high last week and after weaker-than-expected manufacturing data.

Apple (AAPL.O) was the biggest drag on both the S&P 500 and Nasdaq 100 .NDX, falling 3.1 percent to $428.91. Fidelity Contrafund, a $92 billion fund that is the largest active shareholder in Apple, reported that it cut its stake in the iPhone maker by 10 percent during the first two months of 2013.

Data showed factory activity grew at the slowest rate in three months in March, suggesting the economy lost some momentum at the end of the first quarter.

Recent data that has pointed to a strengthening economy has helped push stocks to record highs on both the Dow and S&P 500. The S&P 500 ended March with a record closing high and posted its best quarterly performance in a year, while the Dow broke into new record territory in early March.

"It was very difficult for the S&P 500 technically to break through that high level and to even close there, so it doesn't surprise me that today is a down day," said Brian Amidei, managing director at HighTower Advisors in Palm Desert, California. "I think there's a lot of resistance at the 1,565 level."

The benchmark S&P index remains below its record intraday high of 1,576.09. Moves may be limited this week in the absence of major catalysts before the closely watched U.S. monthly payrolls report on Friday.

The Dow Jones industrial average .DJI was down 5.69 points, or 0.04 percent, at 14,572.85. The Standard & Poor's 500 Index .SPX was down 7.02 points, or 0.45 percent, at 1,562.17. The Nasdaq Composite Index .IXIC was down 28.35 points, or 0.87 percent, at 3,239.17.

Volume was second-lowest of the year, with roughly 5.16 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT. That compares with the 2012 average daily closing volume of about 6.45 billion. Decliners outpaced advancers on the NYSE by nearly 7 to 3 and on the Nasdaq by nearly 3 to 1.

For the year, the S&P is up 9.5 percent, the Dow is up 11.2 percent and the Nasdaq is up 7.3 percent.

With the strong start to the year, many investors have been anticipating a pullback. Uncertainty over the economic future of Cyprus has weighed on stocks in recent sessions. European markets were closed on Monday for a holiday.

Among the day's biggest gainers, Tesla Motors Inc (TSLA.O) surged 15.9 percent to $43.93 after forecasting full profitability in the first quarter, citing strong sales of its Model S sedan.

Decliners included Dell Inc DELL.O, which warned that it would be dangerous to take on a lot of debt and remain a public company given its worsening profit outlook, in a sign that it views proposals from Blackstone Group LP (BX.N) and billionaire investor Carl Icahn as fraught with risk.

Shares of Dell dipped 0.2 percent to $14.30. Dell's comments came on Friday, a holiday for U.S. markets.

In the day's economic data, the Institute for Supply Management said its index of national factory activity fell to 51.3 last month from 54.2 in February. A reading above 50 indicates expansion in the manufacturing sector.

A report from the Commerce Department showed construction spending rose more than expected in February, gaining 1.2 percent, above forecasts of a 1 percent rise.

After the close, shares of BGC Partners (BGCP.O) were up 42.3 percent at $5.48 after news of the sale of its eSpeed platform to Nasdaq OMX Group (NDAQ.O).

Also, shares of health insurers rallied after the bell as planned cuts in U.S. government payments for private Medicare Advantage insurers did not materialize.

Shares of Humana (HUM.N), which derives about two-thirds of its revenue from Medicare Advantage business, rose 9 percent to $81.75 in after-hours trading.

(Editing by Peter Galloway, Nick Zieminski and Leslie Adler)

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Comments (14)
ChangeWhat wrote:
“U.S. manufacturing posts best quarter in 2 years: Markit” – This is one news article running on Reuters right now.

Go to this article to see comment 2.

Apr 01, 2013 11:01am EDT  --  Report as abuse
Ed57 wrote:
Mergers may be good for our economy in the short term but larger, and fewer, companies only limit competition, product selection, personal service and drive up costs in the long run. Just look at the situation with supermarkets, banks, or telephone companies.

Apr 01, 2013 11:13am EDT  --  Report as abuse
User21 wrote:
Why is the market down? I was planning on buying some stocks and commodities as those seem to keep going up.

Apr 01, 2013 11:30am EDT  --  Report as abuse
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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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