The S&P 500 declined 0.7 percent to 1,268.74 at 12:48 p.m. New York time, the lowest level on a closing basis since December. The Dow Jones Industrial Average lost 67.40 points, 0.6 percent, to 12,051.17. Trading in S&P 500 companies was 3.8 percent below the 30-day average at this time of day.
“The data has been more pessimistic than optimistic,” said Tim Holland, portfolio manager at TAMRO Capital Partners, which oversees $1.75 billion. He spoke in a telephone interview from Alexandria, Virginia. “That obviously adds up to concern about Europe. The market is taking a very cautious tone.”
Equities fell as data showed that factory orders dropped 0.6 percent in April, pointing to a deceleration in manufacturing. China’s non-manufacturing industries expanded at the slowest pace in more than a year. German Chancellor Angela Merkel’s spokesman said that Spain knows where to look for aid if it’s needed, giving no ground to Prime Minister Mariano Rajoy’s pleas that Germany consider new ideas to resolve the debt crisis.Share on Facebook