Wall Street pulls back after last week’s gains

first_imgEconomic data expected to roll out this week could give investors a better sense of whether to expect more of the interest rate cuts that touched off last week’s rally. Findings due today include reports on sales of existing homes for August and the Richmond Fed’s regional survey. Many investors hope readings on durable goods and consumer spending later this week will give the Fed room to cut rates still further when it meets next month. Among financial stocks, Citigroup Inc. fell 92 cents to $46.59 while JPMorgan Chase & Co. declined 79 cents to $46.34 after the IMF concerns about prolonged tightness in the credit markets and its contention that regulators should tighten their oversight of financial institutions to rein in some of the newer debt products that have in part allowed easy access to credit in recent years. Housing stocks fell sharply ahead of the data on existing-home sales and a report on quarterly results from Lennar Corp. Lennar fell $1.14, or 4.5 percent, to $24.18, while Pulte Homes Inc. ended down $1.06, or 6.6 percent, to $15.10. In corporate news, GM fell 20 cents to $34.74 after thousands of UAW workers walked off the job as negotiations between the union and the automaker remained stymied – mainly over the issue of job security.160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! NEW YORK – Wall Street retreated Monday, taking a break from last week’s big advances, as financial stocks fell amid fresh concerns about soured loans. With little fresh data to go on Monday, investor enthusiasm weakened by midsession and sectors from banks to home builders showed declines, while technology stocks fared better. Stocks began to give up their gains after the International Monetary Fund warned the credit upheaval hurting international financial markets would likely be “protracted” and dampen growth of the global economy. While its stock didn’t fall sharply, General Motors Corp. shares lost ground after the United Auto Workers began its first nationwide strike during auto contract negotiations since 1976. In addition, the stock market’s pullback might have been expected after gains last week of more than 2.5 percent in the major stock market averages. “I think you’re seeing some profit taking after last week’s rally,” said Scott Fullman, director of investment strategy at Israel A. Englander & Co. “You have consumer confidence that is something being closely watched, and you’re seeing a general end of quarter nervousness.” In addition to declines in the Dow Jones, S&P 500 and Nasdaq, the dollar fell against major currencies, hitting a fresh low against the euro, and gold prices rose. Oil prices fell as a tropical depression in the Gulf of Mexico dissipated without causing damage to key oil and gas infrastructure. A barrel of light, sweet crude settled down 67 cents at $80.95 on the New York Mercantile Exchange. There were no major economic reports Monday. However, Dallas Fed President Richard Fisher said a downturn in inflation gives policymakers “some wiggle room” to further cut interest rates. Fed Chairman Ben Bernanke gave a speech on education but did not touch upon economic issues. last_img read more