* U.S. Midwest business data weaker-than-expected
* S&P; on track for first monthly loss since November
* Sunoco to be acquired; shares jump 20 pct
* Indexes off: Dow 0.2 pct, S&P; 0.5 pct, Nasdaq 0.6 pct
By Angela Moon
NEW YORK, April 30 (Reuters) – U.S. stocks fell on Monday,
putting the S&P; 500 on track for its first monthly decline since
November, after data hinted the U.S. economic recovery is
stalling and Spain’s fall back into recession underscored
nagging euro zone stresses.
The S&P;’s four-day rally was in jeopardy as it fell below
the technically important 1,400 level. The S&P; closed above
1,400 for the first time in three weeks on Friday and that point
has been a key resistance for weeks.
A merely modest boost in U.S. consumer spending last month
and a private industry gauge showing a much sharper-than
expected decline in Midwestern business activity in April
suggested the economy entered the second quarter with less
steam.
Spain’s economy sank into recession in the first quarter as
deep government spending cuts to reduce a massive deficit and
troubles in the banking sector likely delayed any return to
growth.
“We have a multiple of issues here. Spain is casting a
negative tone in the market here, but after last week’s rally,
the market was set for some profit taking,” said Tim Ghriskey,
chief investment officer at Solaris Asset Management, Bedford
Hills, New York.
“The 1,400 level is a bit of an issue too. It’s creating
that resistance.”
Banks were among the top decliners on Wall Street after
Standard & Poor’s cut the credit ratings of 11 Spanish banks on
Monday, following its downgrade of Spain last week.
The S&P; 500 financial sector index fell 0.7 percent
while Bank of America Corp dropped 1.2 percent to $8.15.
The Dow Jones industrial average was down 29.33
points, or 0.22 percent, at 13,198.98. The Standard & Poor’s 500
Index was down 6.57 points, or 0.47 percent, at 1,396.79.
The Nasdaq Composite Index was down 19.74 points, or
0.64 percent, at 3,049.46.
Humana Inc declined 8.6 percent to $80.31 after the
company, one of the largest providers of Medicare insurance for
the elderly, posted a 21 percent drop in profit. The Morgan
Stanley healthcare payor index declined 2.3 percent.
Exchange operator NYSE Euronext reported its
quarterly profit fell by almost one-third due to a difficult
trading environment and costs from its failed merger with
Deutsche Boerse. Its shares were off 5.5 percent to
$25.57.
According to Thomson Reuters data through Monday morning, of
the 297 S&P; 500 companies that have reported quarterly results
so far, 72 percent topped estimates. A strong earnings season
helped lift the benchmark S&P; index to its best week since
mid-March on Friday.
On the positive side, shares of Sunoco Inc jumped
19.5 percent to $48.87 after pipeline operator Energy Transfer
Partners LP said it would buy the company for $5.35
billion in stock and cash.
Barnes & Noble Inc surged about 60 percent to $22.05
after Microsoft Corp agreed to invest $300 million in
the bookseller’s digital and college operations. The deal values
the Nook and textbook businesses at $1.7 billion.
