Stocks end mixed as record-rally stalls

Traders work on the floor of the New

Traders work on the floor of the New York Stock Exchange on Friday. (May 10, 2013) Photo Credit: Bloomberg News

advertisement | advertise on newsday

A record-breaking rally in stocks paused Monday as investors assessed whether the rise in stock valuations overstated the recent improvement in the economy.

The latest positive data, out Monday, showed that Americans increased spending at retailers last month. That suggests that consumers may boost economic growth in the current quarter ending June 30. Still, the news wasn't enough to lift shares.

advertisement | advertise on newsday

"What we have seen is a huge rally, and there aren't any stones unturned at this point," said Alec Young, global equity strategist at S&P Capital IQ. "You reach a point where investors aren't willing to bid things up any more."

Stocks have surged this year, boosted by an improving economy, Federal Reserve stimulus and record corporate earnings. Signs that the housing market is reviving are also supporting stocks. The Dow Jones industrial average and the Standard & Poor's 500 index both closed at record highs Friday.

Monday, the Dow fell 26.81 points to 15,091.68. The S&P 500 index was flat at 1,633.77.

Telecom companies dropped the most of any industry in the S&P 500: 0.83 percent. Health care companies advanced the most, rising 0.7 percent. The Nasdaq composite rose 0.06 percent to 3,438.79. -- AP

The latest LI business news in your inbox daily. Get the Biz Briefing newsletter!

Comments now uses Facebook for our comment boards. Please read our guidelines and connect your Facebook account to comment.

You also may be interested in: