New York – Wall Street’s hopes of prolonging its year-end rally suffered another blow Monday as cautious traders sold off stocks and the technology sector posted a steep decline.
The market opened little changed but turned lower at midday despite a court victory for Pfizer Inc. and a multibillion acquisition by FPL Group Inc. Google Inc.’s investment in America Online and strong earnings from Circuit City Stores Inc. were unable to lift tech shares, which have slid sharply lower in recent days.
A lack of economic news left investors with limited guidance and anxious to take profits at any sign of a downturn in the market. Critical data on gross domestic product, housing and consumer spending later this week could determine whether stocks make one final push higher before January.
Low trading volume is expected this week ahead of the holidays, said Rick Pendergraft, an equity trader at Schaeffer’s Investment Research. He added that the market may still be holding back after the November rally pressured many to buy stocks.
The Dow Jones industrial average dropped 39.06, or 0.36 percent, to 10,836.53, after spending most of the day in positive territory.
The Bloomberg Colorado Index, a price- weighted list of companies based in the state, fell 3.24, or 1 percent, to 323.71, its biggest drop since Nov. 28.
Broader stock indicators also finished lower. The Standard & Poor’s 500 index sank 7.40, or 0.58 percent, to 1,259.92, and the Nasdaq composite index plunged 29.74, or 1.32 percent, to 2,222.74.
Bond prices were flat, with the yield on the 10-year Treasury note unchanged at 4.44 percent from late Friday. The U.S. dollar was mixed against other major currencies, as gold prices inched higher.
Crude futures saw a second day of losses as warm weather persisted throughout the Northeast and reduced expectations for a spike in heating-fuel demand. A barrel of light crude fell 72 cents to settle at $57.34 on the New York Mercantile Exchange.
