Dow, S&P slip as Spain enters recession

News that Spain had entered another recession renewed worries about the fragility of Europe's finances yesterday and nudged stocks lower. The market ended its first losing month this year.

Disappointing economic reports and weak corporate earnings also weighed on stocks. The Standard & Poor's 500 index slipped 5.45 points to close at 1,397.91. For April, it was down 0.8 percent, its first month in the red since November.

The Spanish government said the country's economy shrank in the first quarter, the second straight quarter of contraction. The worry is that Spain's economy could be too big to rescue. It's twice as big as the combined economies of Greece, Portugal and Ireland, the three countries that have received bailout loans.

In the United States a drop in an index of Midwestern manufacturing and a slowdown in consumer spending last month added to worries the economy is losing steam.

Weaker earnings reports from health insurer Humana and the owner of the New York Stock Exchange, NYSE Euronext, also hurt stock indexes.

The Dow Jones industrial average fell 14.68 points to close at 13,213.63, narrowly avoiding its first monthly loss since September. The Nasdaq fell 22.84 to 3,046.36. -- AP