Updated from 4:04 p.m. EDT
Stocks fell Monday as a spike in oil prices and disappointing earnings from
helped spur traders to take profits after five straight sessions of gains.
Dow Jones Industrial Average
ended with a loss of 36.42 points, or 0.32%, to 11,345.05, and the
gave back 4.78 points, or 0.37%, at 1297.52. The
shed 16.2 points, or 0.75%, to 2147.75.
The tech-heavy Nasdaq was pressured by the Philadelphia Semiconductor Sector Index, which dropped 2.1%. The decline comes after the index surged by 10% last week. All of the index's 19 components were lower by 1% or more.
About 1.11 billion shares changed hands on the
New York Stock Exchange
, where decliners beat advancers by a 9-to-7 margin. Volume on the Nasdaq was 1.35 billion shares, and twice as many stocks fell as the number that rose.
Last week, benign inflation data powered the major averages higher, led by the Nasdaq's 5.2% climb. The Dow added 2.6%, and the S&P tacked on 2.8%.
"After last week's big advance, you've got to expect some consolidation," said Ken Tower, chief market strategist with CyberTrader.
The 10-year Treasury was higher by another 6/32 in price, lowering the yield to 4.82%. Since last week, the yield on the note has dropped by 17 basis points. The dollar fell against major world currencies.
Oil futures climbed $1.31 to close at $72.45 a barrel after Iran, the world's fourth-largest exporter, said this weekend that it wouldn't halt its uranium-enrichment program. Iran plans to respond Tuesday to a demand from the West that it put an end to its nuclear program. Gold was higher by $12.50 to close at $635.20 an ounce, and silver tacked on 31 cents to $12.34 an ounce.
Barry Hyman, equity market strategist with EKN Financial, said that light trading kept the market from giving back a tremendous amount of its run-up, "but with oil's gain today and more Iran fears, we're bringing in some profit-takers."
This week's economic calendar, with the exception of housing data, is light, but investors will be paying attention to a gathering of economists in Jackson Hole, Wyo., that will include
Chairman Ben Bernanke. Following two government reports last week that suggested tame inflation, Bernanke might offer comments that will give the market some idea about where he's leaning on rates.
To view Gregg Greenberg's video take on today's market, click here
At a meeting earlier this month, Fed policymakers left the fed funds target rate unchanged for the first time in more than two years.
Lowe's, the seller of home-improvement goods, earned $935 million, or 60 cents a share, for the second quarter, up from $839 million, or 52 cents a share, a year ago. Revenue rose to $13.39 billion from $11.93 billion. Analysts were calling for a 61-cent profit on sales of $13.38 billion.
Same-store sales advanced 3.3% for the second quarter, but Lowe's said they would be flat to up just 2% for the third quarter. The company also forecast third-quarter total sales growth of 11%, shy of the 13% Thomson Financial target. Lowe's profit guidance of 45 cents to 48 cents a share was in line with the 46-cent consensus estimate. Lowe's slid $1.17, or 4%, to $28.35.
Medical technology company
( KNSY) reported fiscal fourth-quarter income of $2.7 million, or 21 cents a share, down from a profit of $3.3 million, or 27 cents a share. Excluding items, the company earned 26 cents a share, in line with estimates but below a year ago. Kensey Nash also offered first-quarter guidance far below expectations. Shares tumbled $2.88, or 9.7% to $26.72.
fell 2.4%, extending a 2.8% slide Friday following the company's lackluster second-quarter results. Shares were lower by 54 cents to $21.62. For the year, shares have fallen about 27%.
Away from earnings,
unveiled its new Sansa e280 portable MP3 player, which offers twice the storage capacity of
iPod nano. SanDisk rose 0.4% to $51.39, while Apple dropped 2% to $66.56.
Among ratings changes, Credit Suisse downgraded
after the automaker said it would reduce its vehicle production in North America by 21% during the fourth quarter because of declining U.S. sales. Ford fell 53 cents, or 6.6%, to close at $7.47.
Elsewhere, Prudential cut its rating for
to underweight from neutral, even after the retailer posted a second-quarter profit rise and raised its forecast for the year on Friday. Shares were off 97 cents, or 2.4%, to finish at $39.33.
made an unsolicited offering for rival chicken processor
( GKIS) for $1.02 billion, plus the assumption of $144 million in debt. Gold Kist said its board is mulling the offer, which values Gold Kist at $20 a share, a 54.7% premium over Friday's closing price.
Gold Kist surged $6.09, or 47.1%, to $19.02. Pilgrim's Pride was higher by $1.33, or 5.6%, to $24.98.
Overseas shares were mostly lower. London's FTSE 100 added 0.2% to 5915, but Frankfurt's Xetra DAX lost 0.4% to 5795. Tokyo's Nikkei 225 lost 0.9% to 15,969, and Hong Kong's Hang Seng fell 1.9% to 17,008.