US stocks retreat on profit-taking

NEW YORK: US stocks Monday took a breather from the bull market of 2013, pushing lower as some analysts cited profit-taking and speculation of tighter monetary policy

The Dow Jones Industrial Average fell 77.64 (0.48 per cent) to 16,008.77. The broad-based SandP 500 dipped 4.91 (0.27 per cent) to 1,800.90, while the tech-rich Nasdaq Composite Index lost 14.63 (0.36 per cent) at 4,045.26.

Bill Lynch, director of investments at Hinsdale Associates, said investors may have pushed up their expectations for when the Fed could scale back the program in light of a strong Institute of Supply Management reading on manufacturing activity in November.

More key data will come later this week, he added.

The ISM purchasing managers index for November rose to 57.3 from 56.4 the previous month, against expectations of a slight fall.

"I think there's taper jitters arising again with the ISM numbers being better than expected," Lynch said.

The performance of retail stocks ran the gamut, with analysts trying to size up winners and losers in the aftermath of the important "Black Friday" launch of the key holiday shopping season.

Among the winners were Gap (+1.5 per cent) and Lululemon Athletica (+2.4 per cent). Declines were registered by Target (-1.9 per cent), Urban Outfitters (-3.5 per cent) and Macy's (-1.5 per cent). Retailing giant Wal-Mart Stores rose 0.1 per cent.

EBay gained 1.6 per cent after notching strong online sales during Black Friday weekend. Topeka Capital Markets said the online vendor's sales rose 31 per cent through the first three days of a key five-day shopping stretch, "a meaningful positive for the stock."

Industrial and equipment supplier 3M, a Dow component, fell 4.4 per cent after Morgan Stanley downgraded the stock, saying it has a high valuation compared with peers.

Dow Chemical advanced 2.4 per cent after announcing plans to "carve out" a large segment of its low-margin chlorine businesses. The business, which registered US$5 billion in annual revenue, could be divested or reorganized into joint ventures.

US auto giant General Motors jumped 1.0 per cent on speculation of strong November sales. Automakers release their monthly reports on Tuesday