Stocks slip on investor jitters

June 6, 2011: 4:33 PM ET
U.S. stocks

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NEW YORK(CNNMoney) -- Losses in the financial sector weighed on the stock market Monday, as investors remain nervous about the country's economic outlook.

A variety of recent reports have showed the recovery slowed in May, and given that the Federal Reserve's $600 billion stimulus runs out later this month, investors are especially jittery about the strength of the economy going forward.

"There's a sense that liquidity has helped the market a lot more than it has helped the economy, and there is a day of reckoning ahead," said Uri Landesman, president of Platinum Partners.

The Dow Jones industrial average (INDU) fell 61 points, or 0.5%, with JPMorgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500) the biggest drags on the blue-chip index. Of the Dow's 30 components, 23 posted losses.

The S&P 500 (SPX) shed 14 points, or 1.1%, and the tech-heavy Nasdaq (COMP) slipped 30 points, or 1.1%.

"Investors are really trading on emotions right now -- and unfortunately, most people are pessimistic," said Jack Ablin, chief investment officer of Harris Private Bank in Chicago.

U.S. stocks fell sharply on Friday, following a weak May jobs report.

The Dow and S&P have each declined roughly 5% since the beginning of May, amid weak reports on home prices, unemployment claims and manufacturing.

Apple launches iCloud

Companies: Apple (AAPL, Fortune 500) investors adhered to the common Wall Street saying "buy on the rumor, sell on the news," Monday.

Shares of the tech giant fell 1.6% after CEO Steve Jobs' unveiled iCloud , a free service that will store and sync documents, photos and other content across Apple devices. (Read Fortune's live blog of the event at the Worldwide Developers Conference in San Francisco.)

The biggest gainer in the S&P 500, Harley-Davidson (HOG, Fortune 500), saw its shares rise 2.8% after UBS Investment Research called the motorcycle maker a short-term buy, citing strong May sales.

Also bucking the day's downward trend, Starbucks (SBUX, Fortune 500) shares rose 1.7% after analysts at BMO Capital boosted their rating on the coffee retailer to "outperform." The analysts raised their price target for the stock to between $40 and $45 -- a more than 13% premium over Friday's closing price.

June swoon - StockTwits

Currencies and commodities: The dollar rose against the euro and the British pound, but fell versus the Japanese yen.

Oil for July delivery slipped $1.21 to settle at $99.01 a barrel.

Gold futures for August delivery edged up $4.80 to settle at $1,547.20 an ounce.

Bonds: Treasury yields traded in spitting distance of six-month lows Monday. The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 3.01% from 3.00% late Friday.

Meredith Whitney: States are worse than you think

World markets: European stocks ended their session mixed. Britain's FTSE 100 rose 0.2%, the DAX in Germany dipped 0.2% and France's CAC 40 fell 0.8%.

In Asian markets, Japan's Nikkei finished 1.2% lower. The Shanghai Composite and the Hang Seng in Hong Kong were closed for holidays. To top of page

Index Last Change % Change
Dow 24,462.94 -201.95 -0.82%
Nasdaq 7,146.13 -91.93 -1.27%
S&P 500 2,670.14 -22.99 -0.85%
Treasuries 2.95 0.04 1.27%
Data as of 12:52pm ET
Company Price Change % Change
General Electric Co 14.54 0.55 3.93%
Bank of America Corp... 30.26 0.08 0.27%
Apple Inc 165.72 -7.08 -4.10%
Ford Motor Co 10.82 -0.14 -1.28%
Advanced Micro Devic... 9.99 -0.12 -1.19%
Data as of Apr 20
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