By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market retreated Monday
after a surprise drop in Chinese exports in February and last
week's gains, which had lifted the S&P 500 to a record.
The S&P 500 (SPX) dropped 5.6 points, or 0.3%, to 1,872.38.
The benchmark index gained 1% over the past week and finished
Friday at a record level. The Dow Jones Industrial Average (DJI)
fell 74.17 points, or 0.5%, to 16,371.58.
The Nasdaq Composite (RIXF) wobbled shortly after the opening
bell, but fell 13 points, or 0.3%, to 4,321.38.
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"In the short-term, China's trade data was disappointing,
however, at this point it is unclear how much of it was distorted
by the Lunar New Year holiday," said John De Clue, chief investment
officer at U.S. Bank Wealth Management.
"U.S. equities still remain the market of choice for a lot of
international money, which is why we have seen more multiple
expansion over the past few weeks," he added.
Investors reacted to data over the weekend that showed Chinese
exports unexpectedly fell 18.1% in February, compared with a year
earlier. Economists had been expecting an expansion of 5%, and the
number was also well off a rise of 10.6% in January.
With no official data releases scheduled, investors will focus
on two Federal Reserve officials' speeches.
Philadelphia Fed President Charles Plosser spoke earlier out of
Paris, saying the pace of tapering may be too slow. Last week,
Plosser said in an interview that he was worried about how the
central bank's asset purchases are affecting the U.S. economy.
Chicago Fed President Charles Evans will speak at 12:40 p.m.
Eastern at Columbus State University.
The stock market gained over the past week despite ongoing
concerns in Ukraine.
"Investors are certainly concerned about the hardship on the
ground in Ukraine and how the major energy pipelines that connect
Russia to Western Europe may be affected. But as long as there's no
feeling that an escalation into a wider conflict is imminent, the
markets may remain calm," wrote Wasif Latif, VP of equity
investments at USAA Investments.
Among individual stocks, shares of Chiquita Brands International
Inc. (CQB) jumped 16% after the company announced an all-stock
merger deal with Fyffes PLC worth $1.07 billion on Monday.
Boeing Co. (BA) shares fell 2.2% after The Wall Street Journal
reported late Friday that the company has discovered cracks in some
787 Dreamliner jets, which will lead to a delayed delivery of some
aircraft.
McDonald's Corp.(MCD) reported a global same-store sales drop of
0.3% and a 1.4% fall for U.S. sales ahead of the open. Shares were
slightly lower.
Bed Bath & Beyond Inc. (BBBY) cut its fourth-quarter
earnings-per-share outlook on Friday, blaming bad weather. Shares
inched up in early trade.
In overseas markets, Asian stocks fell sharply, with the
Shanghai Composite Index down nearly 3%. The Nikkei 225 index lost
1%. European markets were also lower in choppy trading.
Oil prices were also sharply lower, with April crude (CLJ4) off
more than 1%. Gold prices were flat.
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