Stocks dip as manufacturing growth slows
By The Associated Press
Published: Monday, April 1, 2013, 6:24 p.m.
NEW YORK — The stock market got off to a slow start in April, edging lower after the Standard & Poor's 500 index eclipsed its all-time high last week.
The main catalyst was a slowdown in manufacturing growth last month. The decline in the Institute for Supply Management's benchmark manufacturing index for March was worse than economists had forecast. Stocks started falling shortly after the report came out at 10 a.m. and stayed lower the rest of the day.
The Dow Jones industrial average closed 5.69 points, or 0.04 percent, lower at 14,572.85. The Standard & Poor's 500 index dropped 7.02 points, or 0.5 percent, to 1,562.17.
Industrial companies fell 1 percent, the most in the S&P. 3M, which makes Post-it notes, industrial products and construction materials, fell 66 cents, or 0.6 percent, to $105.65. Caterpillar, a maker of construction and mining equipment, dropped $1.33, or 1.5 percent, to $85.64.
Investors have raised their expectations for the economy as the market has climbed this year, said JJ Kinahan, chief derivatives strategist at TD Ameritrade. The Dow is up 11.2 percent in 2013; the S&P, 9.5 percent.
“The numbers have to be outstanding in order to drive the market higher,” Kinahan said. “It's a different mindset when we're at these levels.”
The S&P 500 closed the first quarter at an all-time high of 1,569.19, surpassing its previous record close of 1,565.15 set on Oct. 9, 2007.
The index has recaptured all of its losses from the financial crisis and the Great Recession.
The Dow broke through its previous all-time high on March 5.
The market has risen this year because of optimism that housing is recovering and that employers are starting to hire again. Strong company earnings and continuing stimulus from the Federal Reserve also have increased demand for stocks.
Small stocks fared worse than large ones Monday.
The Russell 2000, a benchmark of small-company stocks, fell 1.3 percent to 938.78, paring its gain for the year to 10.5 percent. It was the index's biggest decline in more than a month. The Nasdaq composite fell 28.35 points, or 0.9 percent, to 3,239.17.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Regular or Roth? Pick either
- Achieving proper credit balance
- Municipal bonds do another about-face
- Minorities crucial to filling Marcellus shale gas drilling jobs
- Harsh winter sets back Western Pa. maple harvest
- Diaper makers do due diligence
- CVS suit could be test case
- ‘Boomerang’ buyers get another chance at homeownership
- Prepaid cards start to elbow aside bank accounts
- Samsung introduces free streaming radio service
- Cabbies protest ride startups