Midday Report: Manufacturing Activity Slows in March; U.S. Stocks Fall in Start to Second Quarter

Wall Street suffered modest losses to begin the second quarter after disappointing auto sales for March and as manufacturing activity expanded at a slower pace. Cyclical consumer goods, financials and utilities stocks were the worst performers. Economic activity in the manufacturing sector slowed in March, though remained in expansion territory, according to the ISM Manufacturing Index. New orders, production and employment rose, while inventories contracted. Construction spending rebounded in February as warmer weather encouraged activity. However, the measure did not meet expectations for the month. Under Armour (UA) - Get Report was slightly lower after FBR Capital downgraded its rating to UNDERPERFORM from MARKET PERFORM. The firm based the downgrade on recent channel checks and fiercer competition.