Stocks Fall As Economic Concerns Linger

(RTTNews) - Stocks fell Monday as downbeat economic news renewed fears of a U.S. economic slowdown. Stocks accelerated lower just after lunch hour, trimming some of last week's gains.

The S&P 500 closed 15.83 points, or 0.8%, lower at 1,932.22. The Dow Jones Industrial Average dropped 123.47 points, or 0.7%, to 16,516.50. Meanwhile, the Nasdaq Composite ended the day down 32.52 points, or 0.7%, at 4,557.95.

While the major averages had closed higher for two consecutive weeks, they continue to post notable losses for the new year.

The Dow posted a monthly gain for February, but the S&P and Nasdaq recorded a third straight monthly loss.

The PHLX Gold/Silver Index jumped 3 percent as gold prices extended strong monthly gains on risk aversion.

Among stocks in the news, Valeant (VRX) shares plunged 16 percent after the troubled drug maker confirmed it is under investigation by the SEC.

Icahn Enterprises LP sent a letter to Federal-Mogul's board on Sunday offering to pay $7 a share for the company. Federal Mogul shares surged higher by 40 percent.

In economic news, a report from the National Association of Realtors showing an unexpected drop in pending home sales in January.

NAR said its pending home sales index slumped 2.5 percent to 106.0 in January from an upwardly revised 108.7 in December. Economists had expected pending sales to increase by about 0.5 percent.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

A separate report from MNI Indicators showed an unexpected contraction in Chicago-area business activity in the month of February.