U.S. stocks took a tumble on Monday after some weak economic data out of Japan and a dour outlook from home improvement retailer Lowe’s dented optimism for the economy’s recovery.
The Dow Jones industrial average lost 186 points to 9,135. The S&P500 Index fell 24 points to 980 and the NASDAQ dropped 55 points to 1,931.
In economic news: The Empire State Manufacturing survey, a measure of activity in the New York area, climbed to 12.1 in August compared to a read of minus 0.6 in July. Any read that is positive indicates expansion.
In company news: Shares in home improvement retailer Lowe’s Companies Inc (NYSE:LOW) fell 10.34 per cent to $20.47. The retailer posted a weaker than expected profit for the second quarter and says it expects sales in 2009 to fall by about three per cent, below analyst estimates.
Shares in communications solutions company Polycom Inc (NASDAQ:PLCM) lost 2.3 per cent to $22.48. The company announced plans to slash its workforce globally by about three per cent as part of the company’s restructuring efforts.
Shares in industrial products and equipment manufacturer Illinois Tool Works Inc (NYSE:ITW) dropped 2.69 per cent to $40.18. The company reported a 24 per cent drop in operating revenue for the three months to July 31 and forecast earnings in the third quarter to remain steady.
And shares in Atlas Pipeline Partners LP (NYSE:APL) declined 10.96 per cent to $6.50. The provider of natural gas gathering services is to sell around 2.7 million common units to institutional investors for $6.35 a unit, which according to Reuters, represents a 13 per cent discount to the company’s previous close.
Checking the NASDAQ Top 100: Only three stocks closed in positive territory on the Nasdaq overnight, Cephalon rose 0.65 per cent to $55.95. While Express Scripts and O’Reilly Auto also closed stronger. The worst performing stock was Electronic Arts which fell 8.08 per cent to $19.57. While Wynn Resorts and Flextronics also closed lower.
