Major Averages Close Sharply Lower On Disappointing Manufacturing Data

(RTTNews) - Extending the downward trend seen over the past two weeks, stocks moved sharply lower during trading on Monday. A disappointing reading on manufacturing activity contributed to the broad based weakness on Wall Street.

Most of the major sectors showed notable moves to the downside on the day, reflecting the broad based selling pressure on Wall Street.

Brokerage stocks posted particularly steep losses, resulting in a 3.6 percent drop by the NYSE Arca Broker/Dealer Index. With the loss, the index set a two-month closing low.

LPL Financial (LPLA), Raymond James (RJF), and Charles Schwab (SCHW) turned in some of the brokerage sector's worst performances.

Significant weakness was also visible among steel stocks, as reflected by the 3.5 percent loss posted by the NYSE Arca Steel Index. The drop pulled the index down to its lowest closing level in almost five months.

Biotechnology stocks also saw considerable weakness, dragging the NYSE Arca Biotechnology Index down by 3.2 percent. InterMune (ITMN) helped lead the sector lower, tumbling by 10.6 percent.

Software, tobacco, transportation, and defense stocks also saw notable weakness on the day.

The major averages remained firmly negative going into the close, ending the session near their worst levels of the day. The Dow plummeted 326.05 points or 2.1 percent to 15,372.80, the Nasdaq dove 106.92 points or 2.6 percent to 3,996.96 and the S&P 500 plunged 40.70 points or 2.3 percent to 1,741.89.

With the steep losses on the day, the Dow and the S&P 500 fell to their lowest levels in over three months, while the Nasdaq set a two-month closing low.