U.S. stocks retreat from record highs on China jitters
By Chuck Mikolajczak NEW YORK (Reuters) - U.S. stocks were lower in early afternoon trade on Monday after China's finance minister indicated the country will not increase stimulus measures and U.S. housing data fell short of expectations. Recent data in China has been disappointing, leading many analysts to lower their growth forecasts and hope for more aggressive accommodations from the government. In remarks on Sunday, Finance Minister Lou Jiwei said China wouldn't dramatically alter its economic policy because of any one economic indicator. A closely watched gauge of Chinese manufacturing, due on Tuesday, could indicate activity was contracting. "We have the ISM for China and we have Europe continue to struggle with France and Italy in recession, so you have some developed (nations) plus China problems," said Doug Cote, chief market strategist at Voya Investment Management in New York. "Unless tomorrow’s (data) is really horrendous, I am not that worried about China at this time." The National Association of Realtors said U.S. existing home sales dropped 1.8 percent to an annual rate of 5.05 million units, snapping four straight months of gains. Expectations called for sales increasing to a 5.20 million-unit pace. The PHLX housing sector index was down 1.7 percent. The Dow Jones industrial average was falling 82.72 points, or 0.48 percent, to 17,197.02, the S&P 500 was losing 15.91 points, or 0.79 percent, to 1,994.49 and the Nasdaq Composite was dropping 60.70 points, or 1.33 percent, to 4,519.09. The S&P 500 was on track for its biggest percentage decline since early August. Among the largest percentage gainers on the New York Stock Exchange was Doral Financial, rising 15.2 percent, while the largest percentage decliner was CARBO Ceramics, down 16.25 percent. Among the most active stocks on the NYSE were Bank Of America, up 0.80 percent to $17.09; Alibaba, down 4.04 percent to $90.10; and Vale SA ADR, down 5.21 percent to $11.38. On the Nasdaq, Yahoo, down 5.6 percent to $38.63; Apple, down 0.3 percent to $100.69; and Chinanet Online, up 74.5 percent to $3.42 were among the most actively traded. Declining issues were outnumbering advancing ones on the NYSE by 2,517 to 483, for a 5.21-to-1 ratio on the downside; on the Nasdaq, 2,214 issues were falling and 496 advancing for a 4.46-to-1 ratio favoring decliners. The benchmark S&P 500 index was posting 11 new 52-week highs and 12 new lows; the Nasdaq Composite was recording 24 new highs and 119 new lows. (Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)
