Wall Street Rethinks Rally To Start Trading Week

Market Summary

Wall Street suffered its worst trading day of 2013 Monday, as Europe came into the headlines for the first time in a long time providing a perfect excuse for investors to take gains. A pullback isn’t out of the ordinary, but an orderly one would be appreciated. It only took one session, but the blue chips retreated back below the 14K mark, and after a week above 1,500, the S&P dropped below the resistance. The Dow Jones Industrial Average ended down 129.71 points, or 0.9%, at 13,880.08, with 29 of the 30 blue chips in the red. The S&P 500 Index ended down 17.46 points, or 1.2%, at 1,495.71. All 10 S&P 500 industry groups were in the red, led by losses in tech and financials. The Nasdaq Composite Index was the worst performer, shedding 47.93 points, or 1.5%, at 3,131.17.

Crude for March delivery lost $1.60, or 1.6%, to settle at $96.17 a barrel on the New York Mercantile Exchange. Gold rose $5.80, or 0.4%, to settle at $1,676.40 an ounce for a second consecutive winning session.

Economic Rundown

There was only one domestic economic data point on the session. Factory orders for December rose 1.8 percent in December following a downwardly revised November which now shows a 0.3 percent decline. The trend for factory orders, which had been climbing steadily going into last year, has flattened out as the year progressed. A big plus in today’s report is an unusually strong 0.8 percent build in unfilled orders ( a leading indicator of future shipments) for the strongest gain since February.

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