By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks struggled for direction at
the open on Monday, but turned decisively lower as concerns over a
slowdown in China weighed on sentiment.
Investors awaited manufacturing data from the Institute for
Supply Management due to report at 10 a.m. Eastern time. The
manufacturing index is expected to rise to 56 from 56.5.
Construction spending for December is due at the same time. Read:
How reliable are ISM reports?
Shortly after the opening bell, the S&P 500 index (SPX) was
down 3.7 points, or 0.2%, at 1,778.65, inching closer to a key
level resistance level.
The Dow Jones Industrial Average (DJI) began the day down 46
points, or 0.3%, at 15,646.73. The Nasdaq Composite (RIXF) shed 18
points, or 0.4%, to 4,085.70. Follow our stock market live
blog.
The main indexes ended January with the steepest losses in more
than a year, as disappointing data from China, which triggered
selloffs in emerging-markets currencies over the past two weeks,
and worries over deflation in the euro zone forced investors to
flee equity markets and seek safer assets.
Less-than-stellar earnings results from corporations did little
to alleviate fears among investors.
Shares of Jos. A. Bank Clothiers Inc. (JOSB) fell 3.8% after The
Wall Street Journal reported Sunday that the company is in talks to
buy fellow apparel retailer Eddie Bauer, citing sources. Jos. A.
Bank and Men's Wearhouse Inc. (MW) have been locked in a monthslong
battle to buy each other out. Shares in Men's Wearhouse slid
4.9%.
Herbalife Ltd. (HLF) shares rose 3.1% after the company said it
plans to offer $1 billion of convertible notes and use the proceeds
to buy back shares.
Ford Motor Co. (F) shares fell 2.2% after the car maker reported
a 7% drop in sales. General Motors Co. (GM.XX) is also due to
reports its monthly sales on Monday. General Motors stock fell
1.6%.
In other markets, The Nikkei Stock Average fell 2%, putting it
in a technical correction as it closed at 14,619.13, which is just
10% off from a Dec. 30 high of 16,291.
European stocks were slightly easier, but pared some losses. The
dollar (DXY) was mostly lower, and oil was flat, while gold (GCH4)
rose.
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