TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Stocks dip as manufacturing growth slows

By The Associated Press
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

Most-Read Business Headlines

  1. Range Resources to pay $4.15M fine, close old gas drilling impoundments
  2. Chevron gets first OK from Pa. sustainable drilling group
  3. Post-IPO, Alibaba plans global expansion
  4. Bayer to spin off plastics unit as separate company; employment to remain stable
  5. Five things you should know about Alibaba’s leadership
  6. Home construction plunges more than 14% in August
  7. Brighter economy drives up holiday hiring plans
  8. 5 Facebook settings to change now
  9. Net worth in U.S. reaches record high
  10. Positive economic news pushes Dow, S&P 500 to record levels
  11. U.S. Steel shares jump on turnaround strategy
Subscribe today! Click here for our subscription offers.