Wall Street Rethinks Rally To Start Trading Week
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.
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.