Manufacturing data pull back Wall Street from record highs

Investors book profits as uncertainty over economic situation in Cyprus continues

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Reuters New York
Last Updated : Apr 02 2013 | 2:46 AM IST
Stocks declined on Monday after weaker-than-expected US manufacturing data gave investors reason to book profits after both the Dow and S&P 500 set record closing highs in the prior session.

The Institute for Supply Management's March manufacturing reading of 51.3 continued to show expansion, but activity slowed from the 54.2 reading in February.

A separate report showed construction spending rose more than expected in February, gaining 1.2 per cent, compared with forecasts of a 1 per cent rise.

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The benchmark S&P index remains within 16 points of its record intraday high of 1,576.09, but moves may be limited this week in the absence of major catalysts before the closely-watched US payrolls report on Friday.

The S&P 500 ended March with a record closing high, boosted by its best quarterly performance in a year, although the index struggled to reach the new record in recent weeks after another flare-up of the Euro zone debt crisis.

For the year, the S&P is up 9.5 per cent, the Dow is up 11.1 per cent and the Nasdaq is up 7.4 per cent.

With the strong start to the year, many investors have anticipated a pullback, with the market potentially facing more downside risks as uncertainty over the economic situation in Cyprus continues. European markets were closed on Monday for a holiday.

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First Published: Apr 02 2013 | 12:23 AM IST

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