|Page (1) of 1 - 09/24/12||email article||print page|
Shares fall on disappointing German dataUS-MARKETS-STOCKS:Shares fall on disappointing German data
By Ryan Vlastelica
NEW YORK (Reuters) - Stocks fell on Monday, extending last week's decline, as weak European data added to doubts about the prospects for global economic growth.
Energy shares <.GSPE> were among the most active, falling 0.6 percent alongside a 1.2 percent drop in the price of crude oil. The drop in oil prices followed a slide of more than 6 percent last week on worries about world energy demand.
German business sentiment unexpectedly dropped in September, falling for a fifth successive month and showing Europe's strongest economy was moving closer toward recession despite stimulus by the European Central Bank. European shares <.FTEU3> lost 0.6 percent.
Equities have advanced sharply for three months on expectations of central bank stimulus. On September 6 the ECB announced its bond-buying plan and a week later the Federal Reserve announced a third round of quantitative easing intended to bolster the economy and reduce U.S. unemployment.
"We're fairly neutral on the market at this point since the Fed has lessened the potential for any major disappointments, but there are still concerns out there," said Matthew Keator, partner in the Keator Group, a wealth management firm in Lenox, Massachusetts.
He cited worries about the euro zone debt crisis and the decisions facing the United States about its own mounting debt.
With the S&P 500 up more than 7 percent so far this quarter, investors have sought new catalysts to give the market direction. Moves have been slight and volume light. The S&P 500 fell 0.4 percent last week, and the session with the biggest move was a 0.3 percent decline in the index.
The Dow Jones industrial average <.DJI> was down 46.48 points, or 0.34 percent, at 13,532.99. The Standard & Poor's 500 Index <.SPX> was down 6.20 points, or 0.42 percent, at 1,453.95. The Nasdaq Composite Index <.IXIC> was down 20.31 points, or 0.64 percent, at 3,159.65.
Homebuilder Lennar Corp <LEN.N> reported steep rises in its third-quarter earnings and revenue, while orders rose 44 percent. After advancing more than 4 percent in premarket trading, the stock fell 2.5 percent to $36.53.
Lennar's results follow a similarly strong report from KB Home <KBH.N> and together indicate that the housing market is moving toward recovery.
Questcor Pharmaceuticals Inc <QCOR.O> plummeted 28 percent to $21.79 after it said it was being investigated by a U.S. government agency over its promotional practices.
Apple Inc <AAPL.O> will look to extend a rally that took the most valuable U.S. company to an all-time high share price. The rally came as Apple launched the latest version of its iPhone worldwide, generating blockbuster sales. The stock fell 1.3 percent to $691.23.
(Editing by Kenneth Barry)
Related Keywords:US , MARKETS , STOCKS