By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks bounced off session lows
but still finished Monday lower as caution prevailed on a day light
on economic news. Losses followed a drop in prices on Friday, which
dented last week's gains.
The Nasdaq Composite (RIXF) finished the day 50.40 points, or
1.2%, lower at 4,226.39, paring some of the heavy losses at session
lows. Internet and biotech stocks were the biggest losers on the
tech-heavy index.
The S&P 500 index (SPX) ended the day 9.08 points, or 0.5%,
lower at 1,857.44. The benchmark index bounced after nearing a key
support level of 1,850.
The Dow Jones Industrial Average (DJI) shed 26.08 points, or
0.2%, to 16,276.69.
Read the recap of our live stock market coverage.
The sole economic report Monday was Markit's preliminary or
flash PMI index, which tallied 55.5 in March, just slightly below
February's nearly four-year high. Any number over 50 signals
growth.
Most manufacturers said they were churning out plenty of goods
and demand remained strong. They also continued to add workers in
anticipation of stronger growth in the broader U.S. economy in the
months ahead, Markit said.
The data however, did not inspire the markets to move
higher.
Jim Russell, senior equity strategist at U.S. Bank Wealth
Management, was not too concerned by the weakness in the markets
Monday.
"We believe markets are waiting for economic data this week --
for validation that weather was indeed the main culprit in the
weakness in the economy this winter. If it turns out that it was
not the weather, then there will be a downside risk," Russell
said.
San Francisco Federal Reserve President John Williams in an
interview with Washington Post said there was no suggestion from
the Federal Reserve last week that the central bank will pull the
trigger to hike interest rates sooner than previously believed.
"Market perceptions are what they are. But I really don't see
anything of what we said as suggesting that we're going to tighten
monetary policy sooner rather than previously," Williams said.
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 6.7% after the
nutritional-products firm said it nominated three additional Carl
Icahn designees to its board.
Apple Inc. (AAPL) rose 1.2% after news over the weekend that the
tech giant is in talks with Comcast Corp. (CMCSA) about teaming up
for a streaming-television service.
Netflix Inc. (NFLX) shares declined 6.7% after falling below
their 50-day moving average on Friday.
Nu Skin Enterprises (NUS) surged 18% after Chinese authorities
said they would fine the direct-marketing company $540,000 over its
sales and marketing tactics. The stock jumped in relief that no
further action was taken. The company had said last week that it
expects to be fined and potentially face other sanctions in
China.
After selling off on Friday, biotech stocks continued to slide.
The iShares Nasdaq Biotechnology ETF fell 2.8% while Nasdaq
Biotechnology index dropped 3%.
Alexion Pharmaceuticals Inc. (ALXN) shares skidded 6.3%, Biogen
Idec Inc. (BIIB) shed 1.9% and Mylan Inc. (MYL) fell 4.2%.
Facebook Inc. (FB) dropped 4.7%, among the biggest S&P 500
losers. The stock is up 17% year-to-date.
First Solar Inc. (FSLR) reversed earlier losses and closed up
0.7%. The stock rallied 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, gold prices fell sharply, while oil
inched higher. European stocks slid after posting solid weekly
advances last week.
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