Stocks extend January drop; sentiment hit by weak factory data

U.S. stocks declined on Monday, with the Dow Jones Industrial Average extending losses after its worst monthly percentage drop since May 2012, after factory data offered a disappointing take on the economy.

Stocks had wavered ahead of the report that had U.S. manufacturing expanding at a substantially slower pace in January, driving overall factory activity to an eight-month low.

“The number was much weaker than expected and the market is very sensitive at this point to thinking that the Fed has started the policy normalization process too soon,” said Barry Knapp, chief market strategist at Barclays Capital.

Herbalife rose after the provider of weight-loss supplements said it would repurchase shares.

Name Price Change %Change
DJIA Dow Jones Industrial Average 15582.16
-116.69 -0.74%
S&P 500 S&P 500 Index 1768.66
-13.93 -0.78%
NASDAQ Nasdaq Composite Index 4066.49
-37.39 -0.91%

After falling as much as 160 points, the Dow Jones Industrial Average was lately down 140.64 points, or 0.9 percent, at 15,558.21.

The S&P 500 fell 15.78 points, or 0.9 percent, to 1,766.81.

The Nasdaq declined 42 points, or 1.1 percent, to 4,061.79.

For every stock rising, more than two fell on on the New York Stock Exchange, where 184 million shares traded as of 10:40 a.m. Eastern. Composite volume hit 993 million.

The dollar edged lower against other global currencies and the yield on the 10-year Treasury note fell 2 basis points to 2.629 percent.

On Friday, U.S. stocks closed steeply under water, with Wall Street recording its worst month in more than a year and first monthly loss since August, as investors compiled a list of worries that now include emerging markets.

—By CNBC’s Kate Gibson

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