Weak economic data killed a morning rally on Wall Street on Monday. The S&P 500 fell back below the 2800 level but finished well off the day's lows. The surprise drop in construction spending in December sparked a broad decline led by telecom and healthcare stocks.
Spartan Capital Securities chief market economist, Peter Cardillo.
SOUNDBITE: SPARTAN CAPITAL SECURITIES CHIEF MARKET ECONOMIST, PETER CARDILLO (ENGLISH) SAYING:
"I think that the construction data gave an incentive to investors to take some money off the table, and as a result of that, the market was down."
Children's Place wiped out its gains this year. Shares plummeted after the kids apparel retailer's quarterly profit and revenue missed Wall Street's targets by their biggest marginS in at least two years.
Kraft Heinz shares gained ground. Morgan Stanley raised its rating on the food maker to "equal weight".
In Europe, a rally in energy and industrial stocks pulled the major markets higher. But the German Dax closed flat.