Monday, July 16 15:34:53
U.S. stocks fell today after a steep rally in Friday's session, as investors focused on a weak read on retail sales, the latest data to indicate slowing in the economy.
Concerns about how the economy might be impacted by slowing growth and issues in Europe have pressured equities in recent weeks. While Citigroup Inc rose after a posting stronger-than-expected profit, many investors remain concerned about the impact economic uncertainty will have on outlooks.
Many companies have warned on profits in recent weeks. Negative to positive earnings guidance for the second quarter is 3.3 to 1, the worst since 2008, Thomson Reuters data showed. "We're clearly in some sort of a slowdown, and we need to see what companies say about the second half of the year," said Mark Foster, who helps manage $500 million at Kirr Marbach & Co in Columbus, Indiana.
"If we get some decent numbers, that will be a key for our moving higher, especially since a lot of economic data seems a little soft."
Retail sales unexpectedly fell in June, dropping 0.5 percent, compared to the expectation of 0.2 percent growth. A second report on Monday showed manufacturing in New York state rose in July by a bit more than forecast.
Citigroup reported adjusted second-quarter earnings that beat expectations, sending shares up 1.1 percent to $26.94. The results follow JPMorgan Chase & Co's on Friday, which contributed to gains of 1 percent on major indexes.
The Dow Jones industrial average was down 60.63 points, or 0.47 percent, at 12,716.46. The Standard and Poor's 500 Index was down 5.18 points, or 0.38 percent, at 1,351.60. The Nasdaq Composite Index was down 12.97 points, or 0.45 percent, at 2,895.50. (C ) Reuters